Customer Scorecard

April 2021

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 Customer Scorecard
Leading and lagging indicators to measure what matters

KPI Metric: Definition Indicator

Average Order Value: How much revenue is contributed by an “average” order or contract Lagging
Operations Based

Customer Acquisition Cost: The cost of generating a lead (usually determined by marketing expense) and the costs of converting that lead into a Account (sales
Leading
costs); CAC is focused on new Accounts

Cost to serve: Operational costs (e.g. talent and systems investment) required to serve each customer Lagging

Customer Success as a percent of revenue: The total cost to serve for the CS organization as a percentage of revenue Lagging

Customer Effort Score: Customer’s quantification of the ease of use for a company’s products or service Leading
Experience Based

Customer Satisfaction: Measures Account sentiment related to a specific type of interaction at the point of delivery (ex: survey sent directly after completion of
Leading
onboarding)

Net Promoter Score: Measures an Account's willingness to recommend your product/service to a friend or colleague, and loyalty to your company Lagging

CAC: CLTV Ratio: The Lifetime Value of the Account or User / Account or User Acquisition Costs Lagging
Revenue Based

Customer Lifetime Value: The value of gross margin the Account will bring over the lifetime of the subscriber Leading

Gross Dollar Retention: The percentage in total $ value you're retaining, not only number of accounts Lagging

Upsell Rate: Measures the percentage of a period's revenue that was generated from upselling: encouraging existing Accounts to increase their spend, by
Lagging
purchasing more seats, more storage space, going to a higher-priced tier, etc.

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 Customer Scorecard
Benefits to measuring across all three categories

KPI Metric: Definition Benefits

• Provides insights to measure effectiveness of account segmentation and identify cross-sell

Average Order Value: How much revenue is contributed by an “average” order or contract
opportunities
Operations Based

Customer Acquisition Cost: The cost of generating a lead (usually determined by marketing
• Provides guidance to measure effectiveness of sales and marketing efforts; foundational input
expense) and the costs of converting that lead into a Account (sales costs); CAC is focused on
for CAC: CLTV ratio
new Accounts
Cost to serve: Operational costs (e.g. talent and systems investment) required to serve each
• Enables pinpoint unprofitable areas, and solution before others become inefficient
customer
Customer Success as a percent of revenue: The total cost to serve for the CS organization as
• Tracks operational health of CS department; foundational to justify additional investments
a percentage of revenue

Customer Effort Score: Customer’s quantification of the ease of use for a company’s
Experience Based

• Indicative of customer loyalty; helps ID friction points in the customer journey

products or service

Customer Satisfaction: Measures Account sentiment related to a specific type of interaction at

• Provides insight into each customer experience following key interactions
the point of delivery (ex: survey sent directly after completion of onboarding)
Net Promoter Score: Measures an Account's willingness to recommend your product/service
• Identifies what use cases make loyal customers; foundational for referral marketing
to a friend or colleague, and loyalty to your company
CAC: CLTV Ratio: The Lifetime Value of the Account or User / Account or User Acquisition • Identifies areas efficient in acquiring high value accounts, and areas more investment is
Costs required
Revenue Based

Customer Lifetime Value: The value of gross margin the Account will bring over the lifetime
• Critical to understanding optimal spend for account acquisition
of the subscriber
Gross Dollar Retention: The percentage in total $ value you're retaining, not only number of
• Qualifies retention trends
accounts
Upsell Rate: Measures the percentage of a period's revenue that was generated from upselling:
encouraging existing Accounts to increase their spend, by purchasing more seats, more storage • Measures effectiveness of current growth efforts; indicated areas of opportunity
space, going to a higher-priced tier, etc.

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 Thank You