22 Key Customer Success Metrics & KPIs to Track in 2025

Do you ever wonder how successful your business truly is in the eyes of your customers? Understanding customer success metrics is the key to unlocking that insight.

Whether you're new to the concept or looking to refine your existing strategies, I'll explain the most critical metrics, show how to measure customer success effectively and provide actionable tips to improve your customer relationships.

What Are Customer Success Metrics?

Customer success metrics are key performance indicators (KPIs) that help you understand how well you're meeting your customers' needs and expectations. 

By tracking these metrics, you're not just guessing; you have concrete data showing how your customers interact with your product or service.

Why Are Customer Success Metrics Important?

You might wonder, "Why do these metrics even matter?" Well, they’re the secret to keeping customers happy and your business thriving.

When you measure how your customers feel, it’s easier to spot what needs fixing. Businesses that use AI tools, for example, see a 20% boost in employee empowerment, which helps them solve problems faster and better ​(Zendesk, 2025)

Metrics also help you hold onto customers. Happy customers are loyal customers, and companies focused on personalization are 2x more likely to prioritize loyalty metrics, ensuring customers stay longer and keep coming back​(Zendesk, 2025).

And here’s the kicker—when people love what you offer, they tell others. A whopping 61% of customers expect personalized service, and delivering on that can turn them into advocates for your brand​(Zendesk, 2025).

In short, customer success metrics help you improve satisfaction, keep customers around, and make smarter decisions to grow your business. It’s all about focusing on what matters most!

The 22 Essential Customer Success Metrics & KPIs

Let's explore the 22 essential customer success metrics and KPIs that you should be tracking in 2025. 

1. Customer Churn Rate

Customer churn rate is the percentage of customers who stop using your product or service during a specific time frame.

High churn rates can be a red flag indicating dissatisfaction. Reducing churn is crucial because acquiring new customers often costs more than retaining existing ones. 

How to Calculate It: Churn Rate (%) = (Number of Customers Lost During Period ÷ Total Customers at Start of Period) × 100

Actionable Tips to Reduce Churn:

• Engage Regularly: Explore ways to engage customers through personalized emails or calls 
• Provide Exceptional Support: Be prompt and helpful in resolving issues.
• Gather Feedback: Use chat surveys to understand why customers might be leaving.

2. Customer Retention Rate

This metric shows the percentage of customers you retain over a given period.

A high retention rate means you're keeping customers happy and engaged, often leading to increased revenue and referrals.

How to Calculate It: Retention Rate (%) = [(E − N) ÷ S] × 100

E = Number of customers at the end of the period

N = Number of new customers acquired during the period

S = Number of customers at the start of the period

Actionable Tips to Improve Retention:

• Offer Loyalty Programs: Reward customers for their continued business.
• Personalize Experiences: Tailor your services to meet individual customer needs.
• Regular Check-Ins: Schedule periodic reviews to assess satisfaction.

3. Net Promoter Score (NPS)

NPS measures customer loyalty by asking how likely they are to recommend your product or service to others on a scale of 0-10.

It's a straightforward way to gauge overall customer satisfaction and predict business growth.

How to Measure It:

• Survey Question: "On a scale of 0-10, how likely are you to recommend us to a friend or colleague?"
• Calculate NPS: Subtract the percentage of detractors (scores 0-6) from the percentage of promoters (scores 9-10).

Actionable Tips to Boost NPS:

• Act on Feedback: Address concerns raised by detractors.
• Enhance Product Features: Continuously improve based on customer suggestions.
• Appreciate Promoters: Thank loyal customers and consider offering referral incentives.

⭐ Tip: If you are a Shopify user, you can explore the Shopify Chatbots for Product Recommendations on Your Store.

4. Customer Satisfaction Score (CSAT)

CSAT measures how satisfied customers are with a specific interaction or overall experience.

It provides immediate feedback on customer happiness and areas needing improvement.

How to Measure It:

• Survey Question: "How satisfied were you with your experience?" Usually rated on a scale of 1-5.
• Calculate CSAT: (Number of satisfied customers ÷ Total number of responses) × 100

Actionable Tips to Increase CSAT:

• Improve Customer Service: Ensure your team is trained to handle inquiries effectively.
• Streamline Processes: Make it easy for customers to get what they need.
• Personal Touches: Add personalized messages or offers to enhance the experience.

5. Customer Effort Score (CES)

CES gauges how easy it is for customers to interact with your business, such as resolving a problem or completing a purchase.

A lower effort required from customers often leads to higher satisfaction and loyalty.

How to Measure It:

• Survey Question: "On a scale from 'Very Easy' to 'Very Difficult,' how easy was it to solve your issue?"
• Calculate CES: Average the scores to determine the overall effort level.

Actionable Tips to Lower CES:

• Simplify Processes: Reduce the number of steps required to complete tasks.
• Enhance Self-Service Options: Provide FAQs, tutorials, or types of chatbots for quick assistance.
• Improve User Interface: Make your website or app intuitive and user-friendly.

6. Customer Lifetime Value (CLV)

CLV predicts the total revenue a business can expect from a single customer account throughout their relationship.

Understanding CLV helps you allocate resources effectively, focusing on retaining high-value customers.

How to Calculate It? CLV = Average Purchase Value × Average Purchase Frequency × Average Customer Lifespan

Actionable Tips to Increase CLV:

• Upsell and Cross-Sell: Recommend relevant products or services.
• Build Relationships: Foster loyalty through excellent customer service.
• Offer Subscriptions or Bundles: Encourage longer-term commitments.

7. Monthly Recurring Revenue (MRR)

MRR is the predictable total revenue your business generates from all monthly active subscriptions.

It provides a clear picture of your company's financial health and growth trajectory.

How to Calculate It: MRR = Number of Monthly Subscribers × Average Revenue Per User (ARPU)

If you have 200 subscribers, each paying $30 monthly, your MRR is 200×30=$6,000.

Actionable Tips to Grow MRR:

• Introduce Tiered Pricing: Offer different plans to cater to various customer needs.
• Reduce Churn: Keep existing customers subscribed longer.
• Acquire New Customers: Implement marketing strategies to attract more subscribers.

8. Average Revenue Per User (ARPU)

ARPU measures the average revenue generated per user or account.

It helps you understand how much each customer is worth to your business.

How to Calculate It: ARPU = Total Revenue ÷ Number of Users

Actionable Tips to Increase ARPU:

• Enhance Product Value: Add features that customers are willing to pay more for.
• Upselling: Encourage customers to move to higher-priced plans.
• Improve Marketing: Target customers who are more likely to spend more.

9. Net Dollar Retention (NDR)

NDR measures the percentage of revenue retained from existing customers over a period, accounting for upgrades, downgrades, and churn.

A high NDR indicates successful customer retention and expansion strategies.

How to Calculate It: NDR (%) = [(Starting MRR + Expansion MRR – Downgrade MRR – Churned MRR) ÷ Starting MRR] × 100

If starting revenue is $10,000, you gain $2,000 from upgrades but lose $1,000 from downgrades and churn, NDR is: (10,000+2,000−1,000 : 10,000) X 100 = 110%.

Actionable Tips to Improve NDR:

• Focus on Customer Success: Help customers achieve their goals with your product.
• Identify Expansion Opportunities: Offer add-ons or premium features.
• Monitor Downgrades: Understand why customers are reducing their spend.

10. Customer Health Score

A customer health score predicts the likelihood of a customer’s success with your product.

It helps you identify customers at risk of churning and those ready for upsell opportunities.

How to Measure It:

• Assign Scores Based on Factors: Usage frequency, feature adoption, customer satisfaction, etc.
• Create a Composite Score: Combine these factors to get an overall health score.

Actionable Tips to Improve Customer Health:

• Engage with At-Risk Customers: Reach out to understand their challenges.
• Provide Resources: Offer training or tutorials to increase product adoption.
• Celebrate Milestones: Acknowledge customer achievements to build stronger relationships.

11. Product Adoption Rate

Product adoption rate measures how effectively new users are embracing and using your product or service. It reflects the percentage of customers who have started using your product's key features.

Understanding your product adoption rate helps you identify how intuitive and valuable your product is to customers. A higher adoption rate means customers are finding value quickly, which can lead to increased customer loyalty & trust.

How to Measure It: Product Adoption Rate (%) = (Number of New Active Users ÷ Total Number of Sign-ups) × 100

Alternatively, you can track the usage of specific features:

Feature Adoption Rate (%) = (Number of Users Who Use a Specific Feature ÷ Total Number of Users) × 100

Actionable Tips to Improve Adoption Rate:

• Enhance Onboarding: Create a seamless onboarding experience that guides users through your product's core features.
• Provide Tutorials and Guides: Offer helpful resources like video tutorials, FAQs, and documentation.
• Simplify User Interface: Ensure your product is user-friendly and intuitive.
• Gather User Feedback: Regularly ask for feedback to understand barriers to adoption. You can use chatbots to streamline your feedback process.

12. Time to Value (TTV)

Time to Value refers to the time it takes for a customer to realize the expected value from your product or service.

The quicker customers experience value, the more likely they are to remain engaged and satisfied. Reducing TTV can improve customer success metrics by enhancing the overall customer experience.

How to Measure It:

• Identify Key Value Milestones: Define what constitutes "value" for your customers.
• Calculate Average Time: Measure the average time it takes for customers to reach these milestones after onboarding.

Actionable Tips to Reduce TTV:

• Streamline Onboarding Processes: Remove unnecessary steps to help customers get started faster.
• Set Clear Expectations: Communicate the benefits and timelines to customers upfront.
• Provide Quick Wins: Highlight features that deliver immediate value.

13. First Contact Resolution Rate (FCR)

FCR measures the percentage of customer issues resolved during the first interaction with your support team.

A high FCR indicates efficient customer service, increasing customer satisfaction and lower operational costs.

How to Calculate It: FCR (%) = (Number of Cases Resolved on First Contact ÷ Total Number of Cases) × 100

Actionable Tips to Improve FCR:

• Empower Support Staff: Provide training and authority to resolve issues promptly.
• Enhance Knowledge Base: Equip your team with resources to address common problems. Customer service challenges show you how you can address them.
• Use Efficient Communication Channels: Offer live chat or phone support for immediate assistance. 

14. Renewal Rate

Renewal rate is the percentage of customers who renew their subscriptions or contracts over a given period.

A high renewal rate signifies customer satisfaction and loyalty, contributing to steady revenue streams.

How to Calculate It: Renewal Rate (%) = (Number of Renewals ÷ Number of Up-for-Renewal Contracts) × 100

Actionable Tips to Boost Renewal Rate:

• Monitor Renewal Dates: Keep track of when renewals are due and reach out proactively.
• Demonstrate Ongoing Value: Regularly communicate the benefits and updates of your product.
• Offer Incentives: Provide discounts or added benefits for early renewals.

15. Upsell and Cross-Sell Rates

• Upsell Rate: The rate at which customers purchase a higher-tier product or service.
• Cross-Sell Rate: The rate at which customers purchase additional products or services.

Increasing these rates can boost revenue and deepen customer relationships by meeting more of their needs.

How to Measure Them:

Upsell Rate: Upsell Rate (%) = (Number of Customers Who Upgraded ÷ Total Number of Customers) × 100

Cross-Sell Rate: Cross-Sell Rate (%) = (Number of Customers Who Purchased Additional Products ÷ Total Number of Customers) × 100

Actionable Tips to Increase Upsells and Cross-Sells:

• Understand Customer Needs: Use customer data to recommend relevant products or upgrades.
• Train Sales Teams: Equip your team with effective upselling and cross-selling strategies.
• Bundle Offers: Create attractive packages that combine products or services.

16. Customer Engagement Score

Customer Engagement Score quantifies customer engagement with your product or service based on various interactions.

A higher engagement score often correlates with higher customer satisfaction and lower churn.

How to Measure It:

• Define Engagement Activities: Assign points to login frequency, feature usage, and event participation.
• Calculate the Score: Sum the points for each customer to determine their engagement level.

Actionable Tips to Enhance Customer Engagement:

• Personalized Communication: Send tailored messages based on customer behavior. 
• Create Engaging Content: Offer webinars, blogs, and newsletters that provide value.
• Encourage Community Participation: Foster a community where customers can interact and share experiences.

17. Active Users (DAU/MAU)

DAU (Daily Active Users): The number of unique users engaging with your product daily.

MAU (Monthly Active Users): The number of unique users engaging with your product monthly.

Tracking DAU and MAU helps you understand user engagement trends over time.

How to Measure Them:

DAU/MAU Ratio: Divide DAU by MAU to assess stickiness. -> DAU/MAU Ratio = DAU ÷ MAU

Actionable Tips to Increase Active Users:

• Push Notifications: Remind users to engage with timely and relevant messages.
• Gamification: Introduce elements like badges or rewards to encourage regular use.
• Continuous Updates: Keep your product fresh with new features and improvements.

18. Customer Referral Rate

This metric measures the percentage of customers who refer new customers to your business.

Referrals indicate high customer satisfaction and can be a cost-effective way to acquire new customers.

How to Measure It: Referral Rate (%) = (Number of Referred Customers ÷ Total Number of Customers) × 100

Actionable Tips to Encourage Referrals:

• Implement a Referral Program: Offer incentives for customers who refer others.
• Make Referrals Easy: Simplify the process with shareable links or codes.
• Recognize Referrers: Publicly acknowledge customers who bring in new business.

19. Customer Advocacy

Customer advocacy reflects your customers' willingness to support and promote your brand without incentives.

Advocates can significantly boost your brand's reputation and credibility.

How to Measure It:

• Monitor Social Mentions: Track positive mentions and shares on social media.
• Collect Testimonials: Count the number of customers willing to provide testimonials or case studies.

Actionable Tips to Build Customer Advocates:

• Deliver Exceptional Value: Go beyond expectations in your service.
• Engage on Social Media: Interact with customers and share their success stories.
• Create Advocacy Programs: Invite satisfied customers to participate in beta tests or advisory boards.

20. Qualitative Customer Feedback

This involves non-numerical data gathered from customer comments, reviews, and open-ended survey responses.

Qualitative feedback provides deeper insights into customer experiences and emotions.

How to Collect and Analyze It:

• Surveys and Interviews: Ask open-ended questions to gather detailed responses.
• Monitor Reviews and Forums: Keep an eye on what customers are saying online.
• Use Text Analysis Tools: Analyze large volumes of text for common themes.

Actionable Tips to Utilize Feedback:

• Identify Pain Points: Look for recurring issues to address.
• Enhance Product Features: Use suggestions to guide development.
• Improve Customer Communication: Adjust your messaging based on customer language and preferences.

21. Customer Retention Cost (CRC)

CRC represents the total cost associated with retaining existing customers, including marketing, support, and customer success efforts.

Understanding CRC helps you evaluate the ROI of your retention strategies and optimize spending.

How to Calculate It: CRC = Total Retention Expenses ÷ Number of Retained Customers

Actionable Tips to Optimize Retention Costs:

• Automate Processes: Use technology to reduce manual efforts.
• Prioritize High-Value Customers: Focus resources where they have the greatest impact.
• Evaluate Marketing Spend: Ensure retention campaigns are cost-effective.

22. Onboarding Completion Rate

This metric measures the percentage of customers who successfully complete your onboarding process.

A smooth onboarding experience is critical for customer satisfaction and long-term success.

How to Measure It: Onboarding Completion Rate (%) = (Number of Customers Who Completed Onboarding ÷ Total Number of New Customers) × 100

Actionable Tips to Improve Onboarding Success:

• Simplify Onboarding Steps: Make the process as straightforward as possible.
• Provide Support: Offer guidance through tutorials, live chats, or dedicated onboarding specialists.
• Set Clear Goals: Define what customers should achieve by the end of onboarding.

⭐ Tip: You can use AI for onboarding your customers. Integrating AI into your onboarding program enables you to automate regular tasks, provide personalized learning experiences, and make new staff feel welcome and informed.  

How LiveChatAI Enhances Customer Success Metrics

Integrating LiveChatAI into your customer success strategy amplifies the effectiveness of these metrics. By providing instant, personalized, and efficient support, LiveChatAI helps you:

• Improve Customer Satisfaction: Through immediate and personalized interactions.
• Increase Retention Rates: By proactively engaging customers and resolving issues swiftly.
• Drive Growth: By enhancing customer experiences, leading to referrals and advocacy.
• Make Informed Decisions: By collecting and analyzing real-time customer data.

Conclusion

We've journeyed through the 22 essential customer success metrics and KPIs, exploring how each one provides valuable insights into your customers' experiences. 

From measuring satisfaction with CSAT and NPS to understanding financial impacts with CLV and MRR, these metrics are your tools for crafting a customer-centric business.

Key Takeaways:

• Customer Churn Rate and Retention Rate: Critical for understanding customer loyalty.
• Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT): Provide direct feedback on customer perceptions.
• Customer Effort Score (CES): Highlights how easy it is for customers to interact with your business.
• Product Adoption Rate and Time to Value (TTV): Indicate how well customers are integrating your product into their workflows.

Thank you for joining me on this deep dive into customer success metrics! I hope you found valuable insights to apply to your business. 😸

FAQs about Customer Success Metrics

1. What is the most important metric for customer success?

While all metrics provide valuable insights, the Customer Churn Rate is often considered one of the most critical metrics for customer success. 

A high churn rate directly impacts revenue and indicates underlying customer satisfaction or product value issues. By reducing churn, you can improve customer retention and drive sustainable growth.

2. How can I improve my customer success metrics?

Improving customer success metrics involves several strategies:

• Enhance Customer Support: Provide timely, efficient, and empathetic support to resolve customer issues quickly.
• Collect and Act on Feedback: Regularly seek customer feedback through surveys and act on the insights gained.
• Personalize Customer Experience: Tailor interactions and offers to meet individual customer needs and preferences.
• Invest in Onboarding: Ensure new customers understand how to use your product effectively to realize value quickly.
• Monitor Metrics Regularly: Keep a close eye on your customer success KPIs to identify trends and address issues proactively.

3. How often should I review these metrics?

The frequency of reviewing customer success metrics depends on the specific metric:

• Daily: Metrics like Daily Active Users (DAU) and support response times.
• Weekly: Customer Satisfaction Scores (CSAT) and Customer Effort Scores (CES).
• Monthly: Churn Rate, Net Promoter Score (NPS), and Monthly Recurring Revenue (MRR).
• Quarterly: Customer Lifetime Value (CLV) and broader trends in customer engagement.

Regular reviews allow you to respond swiftly to changes and maintain a high level of customer satisfaction.

4. What is the role of customer success in SAAS companies?

Customer success metrics are even more critical if you're running a SAAS company. Here's why:

• Subscription Model Dependency: Your revenue relies on customers continuing to use your service. Metrics like monthly recurring revenue (MRR) and customer lifetime value (CLV) become essential.
• Product Adoption is Key: Understanding how customers use your software helps you improve features and usability. Tracking metrics like product adoption rate and active users (DAU/MAU) can provide valuable insights.
• Competitive Advantage: In the crowded SaaS market, exceptional customer success can set you apart. Focusing on the right metrics can enhance customer satisfaction and outpace competitors.