ON TODAY'S EPISODE:
Net Revenue Retention (NRR) is unarguably a highly important metric but is it the main KPI for a Customer Success Manager? And if so, how do you track progress and make sure your actions influence NRR? In this episode of Impact Weekly, Johan and Lincoln will unwrap Net Revenue Retention and give practical advice on rollup metrics, prioritization and how to make sure you maximize NRR for your customers.
THIS WEEKS QUESTION:
“Is NRR the main KPI for a CSM?”
TOPICS BEING ADDRESSED:
* The definition of NRR and the rollup metrics
* The rule of 15 for prioritization
* What most people miss with NRR - that make all the difference
QUOTES:
Lincoln Murphy (03:52): “Well, really, the primary reason why companies look at NRR is that its an indicator of whether your business is shrinking or growing”
Lincoln Murphy (05:29):” In fact, you know, why is your company investing in customer success? They're investing in customer success because it's the most efficient way to drive NRR and NRR drives company valuation. So it's pretty important stuff.”
Lincoln Murphy (11:30): “If you're giving a discount to a customer to stay and they're not actually gonna be successful, you may just be prolonging the inevitable. So whatever you do, you want to follow up with a success plan to get them back on track.”
Lincoln Murphy (11:46): “[The rule of fifteens] is something that you can kind of take a quick look at what's going on and as a head of customer success on an org level, we can look at our entire customer base.”
Lincoln Murphy (14:15): “[Contraction/Downgrades usually happen because of things that occur earlier in the life cycle. Oftentimes we can track contraction back to onboarding.”
Lincoln Murphy (15:42): “[...] it's not about trying to do anything at the last minute to save them and. It's about making them successful all along the way.”
Lincoln Murphy (17:08): “Everything seemed to be going well by all accounts. And then you realize that their goals had changed. You didn't sync up with them on those goals.”
Johan Nilsson (17:59): “That's why it's good to focus on contraction cases.[..] Because you cannot just only reduce the actual contraction, but you can even turn it around to an expansion opportunity.”
Lincoln Murphy (20:36): “If you focus on making your customer successful, and that's helping them achieve their desired outcome, and giving them their appropriate experience along the way, your customer will tend to stay longer, increase their spend and maybe even advocate for you.”
Do you want more of this? Check out Impact Academy for interactive Customer Success training programs. https://www.impactdemy.com/
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