{"id":1536,"date":"2025-10-08T13:05:01","date_gmt":"2025-10-08T11:05:01","guid":{"rendered":"https:\/\/customerlaunchpad.eu\/?p=1536"},"modified":"2025-10-08T13:20:38","modified_gmt":"2025-10-08T11:20:38","slug":"the-right-kpis-to-track-in-after-sales","status":"publish","type":"post","link":"https:\/\/customerlaunchpad.eu\/fr\/the-right-kpis-to-track-in-after-sales\/","title":{"rendered":"The &#8220;right&#8221; KPIs to track in After-Sales?"},"content":{"rendered":"<p>What are the <em>right <\/em>  KPIs and metrics to track and measure your after-sales performance on? Having driven a complete overhaul of the after-sales organization and strategy recently for a scale-up this was one of the questions I was confronted with. Here a solid framework of post-sales KPIs.<\/p>\n\n\n\n<p>Classical and well-known KPIs are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Net Revenue Retention (NRR)<\/strong>  measures the percentage of recurring revenue retained from existing customers over a specific period, calculated annually or quarterly. \n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: NRR = (Starting Revenue + Expansions + Upgrades &#8211; Downgrades &#8211; Churn) \/ Starting Revenue \u00d7 100. <\/li>\n\n\n\n<li><strong>Above 100%<\/strong> indicates your existing customers are growing in value faster than you&#8217;re losing revenue, showing strong product-market fit and growth efficiency<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Gross Revenue Retention (GRR)<\/strong> measures the percentage of recurring revenue retained from existing customers over a specific period, excluding any expansion revenue. It measures your ability to <strong>prevent churn and contraction<\/strong>, independent of growth initiatives\n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: GRR = (Starting Revenue &#8211; Downgrades &#8211; Churn) \/ Starting Revenue \u00d7 100<\/li>\n\n\n\n<li><strong>GRR caps at 100%<\/strong> (you can&#8217;t retain more than you started with when expansion is excluded). You want above 90% of GRR ideally.<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Time-to-Value (TTV)<\/strong> measures how long it takes for a new customer to realize meaningful value or achieve their first significant outcome from your product or service.\n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: Is very dependent on the business. It can be time from onboarding start to first successful report generated, first workflow automated, first campaign launched, use of x% of your features, or a core feature etc. <\/li>\n\n\n\n<li><strong>This KPI helps reduce churn<\/strong> during the critical initial time of the the relation<\/li>\n\n\n\n<li>In a payments service context I turned this into &#8220;<strong>TTR &#8211; Time to Revenue<\/strong>&#8221; so the time until the first direct debit run was executed or the first product was sold online using our payment solutions.<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Churn Rate<\/strong> measures the percentage of customers or revenue lost over a specific period, typically calculated monthly or annually.\n<ul class=\"wp-block-list\">\n<li>The formulas: \n<ul class=\"wp-block-list\">\n<li>(a) Customer Churn Rate, i.e. the percentage of customers who cancel or don&#8217;t renew: (Customers Lost During Period \/ Customers at Start of Period) \u00d7 100<\/li>\n\n\n\n<li>(b) Revenue Churn Rate, i.e. the percentage of recurring revenue lost from cancellations and downgrades: (MRR\/ARR Lost During Period \/ MRR\/ARR at Start of Period) \u00d7 100<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Churn rate majorly impacts customer health and revenue<\/strong>. Churn is a topic that needs to be looked at at company level, as there are many factors impacting it.<\/li>\n\n\n\n<li>There is also voluntary churn (customer actively cancelling) vs. involuntary churn (payment failures, expired cards)<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Customer Lifetime Value (CLV or LTV)<\/strong> is a metric that estimates the total net revenue or profit a business can expect to generate from a customer over the entire duration of their relationship.\n<ul class=\"wp-block-list\">\n<li>The formulas: <strong>Simple CLV:<\/strong> Average Revenue Per Customer \u00d7 Average Customer Lifespan or <strong>More Precise CLV:<\/strong> (Average Revenue Per Customer Per Period \u00d7 Gross Margin %) \/ Churn Rate<\/li>\n\n\n\n<li>CLTV can guide how much you can spend on acquiring a new customer, how much effort you put into retaining a customer, it can help in pricing strategy and investment decisions. <br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Annual Contract Value (ACV)<\/strong> measures the average annualized revenue generated from a single customer contract, excluding one-time fees.\n<ul class=\"wp-block-list\">\n<li>The formula: <strong>For multi-year contracts<\/strong> ACV = Total Contract Value \/ Number of Years<\/li>\n\n\n\n<li>This metric helps you segment, plan resources, forecast and measure the sales performance of your after-sales team (executed by your CSMs, your renewals managers or your account managers)<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Annual Recurring Revenue (ARR)<\/strong> is a metric that measures the annualized value of all recurring revenue from active subscriptions at a specific point in time. Respectively <strong>MRR <\/strong>measures monthly subscriptions.\n<ul class=\"wp-block-list\">\n<li>The formulas: <strong>For monthly contracts:<\/strong> ARR = MRR (Monthly Recurring Revenue) \u00d7 12, <strong>For mixed contracts:<\/strong> ARR = Sum of all annualized contract values currently active<\/li>\n\n\n\n<li>While this is a company metric, it is crucial for after-sales, customer success and account management to forecast and deliver to ARR targets for existing clients. <br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li> <strong>Ticket Response Time<\/strong> is a metric that measures how long it takes for a customer support team to provide an initial response to a customer&#8217;s support request or ticket.\n<ul class=\"wp-block-list\">\n<li>The formula: Elapsed time from ticket creation\/submission to when a support team member sends the first reply. How long this is depends on business and can be linked to Service Level Agreements (SLAs) with clients.<\/li>\n\n\n\n<li>Response time influences customer satisfaction. Fast responses improve CSAT scores, even if the actual resolution takes longer. It buys you time.<\/li>\n\n\n\n<li>Benchmarks: For Email less then 1  hour is considered excellent, for live chat less than one minute. SLAs for enterprise often say that critical issues must have a reply within 15-30 minutes.<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Ticket Resolution Time<\/strong> is a metric that measures how long it takes to fully resolve a customer&#8217;s support request or ticket from the moment it&#8217;s opened until it&#8217;s closed.\n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: The time elapsed between ticket creation\/submission and when the ticket is marked as resolved\/closed with the issue fully addressed.<\/li>\n\n\n\n<li>This metric is critical to customer satisfaction. Fast resolution directly correlates to higher CSAT and reduced frustration. Internally this shows the efficiency of your support organization and cross-departal collaboration. Patterns in resolution time can reveal areas needing product improvement.<\/li>\n\n\n\n<li>This KPI is often &#8220;forgotten&#8221;, not included in SLAs and not measured in smaller companies yet it is one of the most important service KPIS in my experience.<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li> <strong>Bot Resolution Rate<\/strong> measures the percentage of conversations that are fully resolved by the AI chatbot without requiring human agent intervention or escalation.\n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: Bot Resolution Rate = (Conversations Resolved by Bot \/ Total Conversations Handled by Bot) \u00d7 100<\/li>\n\n\n\n<li>The definition of &#8220;resolved&#8221; depends on the the company. It can be &#8220;customer didn&#8217;t request a human agent&#8221;, &#8220;customer expressed satisfaction or confirmed resolution&#8221; or &#8220;no follow-up ticket within 24 hours&#8221;. You can also correlate bot perfomance with the number of tickets arriving at human agents.<\/li>\n\n\n\n<li>There are related metrics like Containment Rate, Escalation Rate, First Contact Resolution, Both Accuracy and Bot Engagement Rate<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>CSAT (Customer Satisfaction Score)<\/strong> measures how satisfied customers are with a specific interaction, product, service, or experience with your company. It is typically measured by asking customer a simple question: How satisfied were you with (Experience). \n<ul class=\"wp-block-list\">\n<li><strong>The formula<\/strong>: Customers respond using a rating scale, most commonly a 5-point scale: Very Unsatisfied, Unsatisfied, Neutral, Satisfied, Very Satisfied, in numbers or with emojis.<\/li>\n\n\n\n<li>CSAT is often used after support interactions. But can also be done periodically at a larger scale. It always measure satisfaction with specific interactions. It is transactional and no indicator to measure the state of the relation, for with NPS is used.<br>&#8230;<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Net Promoter Score (NPS)<\/strong>  measures customer loyalty and the likelihood that customers will recommend your company, product, or service to others.\n<ul class=\"wp-block-list\">\n<li>The formula: NPS is measured by asking a single queston: On a scale of 0-10 how likely are you to recommend our company\/product to a friend or colleague? Based on their rating customers are classified in three groups, Promoters (9-10), Passives (7-8), Detractors (0-6). You then deduct the detractors from the promoters to come to the NPS. <\/li>\n\n\n\n<li>NPS effectively measures loyalty, helps predict growth opportunity and a high NPS will likely drive you referrals. World-class NPS is above 50, NPS is excellent between 30 and 50. <\/li>\n\n\n\n<li>My recommendation is to do an NPS once a year, to not overload your customers and to combine the survey with a few CSAT questions, checking in on satisfaction with particular teams and features\/services.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>There are more metrics, but this is a comprehensive set that worked for most businesses.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>About Customer Launchpad<\/strong><\/p>\n\n\n\n<p>We help PE\/VC-backed SaaS and Tech scale-ups build scalable customer success strategies across all segments, including digital touch programs for SMB. Through interim leadership and consulting, we design and implement CS systems that actually work.<\/p>\n\n\n\n<p>Want to discuss how we can help you? <a href=\"https:\/\/customerlaunchpad.eu\/fr\/contact\/\" data-type=\"page\" data-id=\"1209\">Get in touch<\/a><\/p>\n\n\n\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>What are the right KPIs and metrics to track and measure your after-sales performance on? Having driven a complete overhaul [&hellip;]<\/p>","protected":false},"author":1,"featured_media":1537,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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Langmann","author_link":"https:\/\/customerlaunchpad.eu\/fr\/author\/admin3817\/"},"uagb_comment_info":0,"uagb_excerpt":"What are the right KPIs and metrics to track and measure your after-sales performance on? Having driven a complete overhaul [&hellip;]","_links":{"self":[{"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/posts\/1536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/comments?post=1536"}],"version-history":[{"count":5,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/posts\/1536\/revisions"}],"predecessor-version":[{"id":1542,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/posts\/1536\/revisions\/1542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/media\/1537"}],"wp:attachment":[{"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/media?parent=1536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/categories?post=1536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/customerlaunchpad.eu\/fr\/wp-json\/wp\/v2\/tags?post=1536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}