May 12, 2024

The Ultimate Guide to Customer Success Metrics for B2B SaaS

Discover how to leverage essential metrics and strategies to enhance customer engagement and retention in your SaaS venture.


  • Understanding and leveraging customer success metrics is crucial for early-stage B2B SaaS companies.
  • Customer Health Scores are vital for predicting customer loyalty and guiding proactive strategies.
  • Top 10 essential customer success metrics include Customer Sentiment, NPS, and Product Usage Frequency.
  • Empra Consultancy offers tailored solutions to enhance customer success through their LaunchPad Program.
  • Integrating these metrics and services can drive growth, improve customer relationships, and ensure competitive advantage in the SaaS landscape.


In today's competitive landscape, understanding and leveraging customer success metrics is paramount for early-stage B2B SaaS companies. These metrics not only gauge customer satisfaction and loyalty but also predict financial sustainability and growth.

For executives and founders, it's not just about collecting data; it's about deriving actionable insights that propel your business forward. At Empra Consultancy, we specialise in transforming customer success from a concept to a fully operational department within just four months through our LaunchPad Program. This intensive program equips businesses with everything from strategic guidebooks covering the entire customer journey, including onboarding, engagement, and renewals, to bespoke, cost-effective customer success software tailored to the unique needs of emerging SaaS companies.

In this article, you will learn:

  • The vital metrics for tracking customer engagement and success.
  • Strategies to measure and optimise each metric effectively.
  • How Empra’s bespoke solutions, tailored to early-stage companies, enhance customer success.

Embracing these metrics will not only improve your customer retention rates but also align your product, marketing, and sales efforts with a customer-centric approach, ensuring sustainable growth and success.

Understanding the Importance of Customer Health Scores

The emergence and prevalence of Customer Health Scores can be traced back to the broader evolution of the customer success field. As businesses have come to recognize the critical role of customer success in driving retention and satisfaction, the development of sophisticated metrics like Customer Health Scores has become a priority. To understand this progression further, consider exploring our detailed analysis in "The Evolution of Customer Success," which provides context on how these practices have transformed to meet modern business demands.

What is a Customer Health Score?

A Customer Health Score is a composite metric that aggregates various customer interaction data points to indicate the overall health of the customer relationship. Factors commonly included are product usage frequency, customer feedback scores like CSAT or NPS, support interaction frequency, and payment histories. This metric enables businesses to monitor and assess the strength of their customer relationships continuously.

Why Customer Health Scores Matter

The value of a robust Customer Health Score lies in its ability to provide a quantifiable measure of customer satisfaction and engagement. Healthy customers are likely to renew and expand their contracts, while those with declining scores may be at risk of churning. By maintaining a clear and continuously updated view of each customer's health, companies can prioritise outreach, tailor customer experiences, and intervene before issues escalate.

Integrating Health Scores with Other Metrics

The implementation of Customer Health Scores is not in isolation but intertwined with other essential metrics that will be explored in the subsequent section. Each of these metrics—ranging from Net Promoter Score (NPS) to Product Usage Rate—plays a part in shaping the overall Customer Health Score and can have a significant impact customer churn rate, customer retention rate and overall growth of a company. Understanding the interaction between these metrics provides a holistic view of customer success and allows businesses to fine-tune their strategies for maximum impact.

How to Calculate Customer Health Score

Calculating a Customer Health Score involves several critical steps that can be customised to fit the specific needs and objectives of your company. Here’s a step-by-step guide to setting up a system that helps you monitor and improve customer engagement effectively:

1. Define Customer Health at Your Company: Understanding what 'healthy' means for your customers is the first crucial step. This definition will guide which metrics you track and how you interpret them. Empra can assist in defining this crucial metric tailored to your company's needs. Interested in refining your approach? Book a quick consultation call with us today.

2. Select Your Predictive Metrics: The health of your customer relationship is influenced by a variety of factors. We will discuss the 10 most common metrics in the subsequent sections that provide a comprehensive view of customer interactions and their implications on business outcomes.

3. Create a Scoring System: A scoring system interprets the data from your chosen metrics into a comprehensible and actionable score. Here are a few methodologies you might consider:

  • Quadratic Scoring: This method rewards customers exponentially as they surpass certain critical thresholds, emphasising the importance of exceptional performance.
  • Percentage-Based Scoring: Customers are scored based on the percentage of goals or benchmarks they meet. For instance, if a customer utilises 80% of the intended features, their score reflects this achievement.
  • Weighted Scoring: Assigns different weights to various aspects of customer behavior, such as giving more importance to product usage than survey responses.
  • Point-Based Scoring: Points are assigned for various activities or milestones; for example, completing onboarding might earn points, while submitting a support ticket might subtract points.
  • Threshold Scoring: Customers are scored based on the number of set thresholds they meet, which simplifies understanding and communicating the scores internally or with customers.

How to Visualise Your Customer Health Score

Visualising Customer Health Scores effectively is key to understanding and communicating the status of your customer relationships across your organisation. Here are some effective methods to display these scores:

Colour Coding

A graphic showing 4 companies and their customer metrics | Source: Empra
Customer Health Score - Colour Coding

‎A simple yet effective method where colours indicate the status (e.g., green for healthy, yellow for at-risk, and red for critical).

Risk Reason

Utilise a detailed breakdown of specific risk factors associated with each customer to prioritise interventions.

A table showing 10 companies and their associated risk reasons | Source: Empra
Customer Health Score - Risk Reason


Useful for competitive environments, leaderboards rank customers based on their health scores, fostering a proactive approach among account managers.

A table showing 10 companies ranked by the customer health scores | Source: Empra
Customer Health Score - Leaderboard

Customisable Reports

At Empra, we specialise in creating completely bespoke reports tailored to highlight specific metrics crucial to your business. With our expertise in Customer Success, we ensure that these reports are perfectly suited to your unique operational needs, providing a detailed breakdown of customer health and facilitating strategic decision-making.

Closing Remarkers on Visualisations

By applying these visualisation techniques, companies can create a more dynamic and responsive customer success strategy, ensuring that every customer interaction is data-driven and aligned with company objectives.

Case Study: Implementing a Tailored Health Score Metric in a SaaS Company

In this anonymised case study, we explore how a B2B SaaS company faced the challenge of developing a comprehensive Customer Health Score to assess customer satisfaction, identify potential risks, and accurately predict renewal potential. The objective was to create a metric that encapsulated key performance indicators relevant to their specific operational needs.
Main Challenge:
The company needed a unified metric to serve as a valuable tool for their customer success managers (CSMs) in driving customer success and retention. The challenge lay in creating a metric that not only captured essential indicators such as Relationship NPS, Customer Sentiment, Service Ticket Volumes, CSAT, and Core Product Feature Usage but also combined them into a single, actionable score.
The first version of the combined Customer Health Score Metric allowed the CSMs to assess the likelihood of customer growth, renewal, or churn effectively. This holistic metric provided valuable insights into customer health and identified potential risks, empowering the CSMs to take proactive measures to drive customer success. Within the first six months post-implementation, customer churn rate reduced by 30% and upselling across all customer segments increased by 25%.

Top 10 Essential Customer Success Metrics

Following our discussion on Customer Health Scores, it's crucial to delve into the specific metrics that influence these scores. For early-stage B2B SaaS companies, understanding and mastering these metrics is pivotal, as they not only illuminate customer interactions but also drive strategic decisions aimed at maximising satisfaction and retention.

In this section, we will explore the top 10 essential customer success metrics. Each metric contributes significantly to painting a comprehensive picture of customer health, informing proactive customer success management strategies. From customer sentiment to product usage, these metrics collectively shape the overall health score, enabling informed, data-driven decisions that strengthen customer relationships.

Let’s examine each metric in detail to understand how they integrate into an effective customer success framework.

1. Customer Sentiment

  • Description: A qualitative assessment of a customer's feelings about their experience with the product or service.
  • Importance: Influences loyalty, retention, and advocacy; strongly affects renewal likelihood.
  • How to Measure: Regular check-ins and discussions with customers, scored by Customer Success Managers.
  • Formula: Subjective scoring on a scale (e.g., 1-10) based on interaction quality, feedback, and overall satisfaction.
  • Health Score Integration: Direct input into health scores as a reflection of customer satisfaction and potential advocacy.
  • Benchmark: Scores consistently above 8 (on a scale of 1-10) typically indicate high customer satisfaction and loyalty.

2. Net Promoter Score (NPS)

  • Description: Measures customer loyalty and likelihood of recommending the product to others.
  • Importance: Indicator of growth potential through referrals and customer satisfaction.
  • How to Measure: Surveys asking how likely customers are to recommend the product/service.
  • Formula: NPS = (% Promoters) - (% Detractors)
  • Health Score Integration: Reflects overall satisfaction and loyalty, impacting the likelihood of long-term customer retention.
  • Benchmark: A score above 50 is excellent, but companies should aim for an NPS above 70 for world-class service.

3. Customer Effort Score (CES)

  • Description: Assesses the ease of customer interaction and resolution effectiveness.
  • Importance: High effort levels can lead to customer frustration and an increased churn rate.
  • How to Measure: Surveys post-interaction asking about the ease of resolution.
  • Formula: Average of customer responses on an ease-of-interaction scale.
  • Health Score Integration: Lower scores can pinpoint areas needing process improvements.
  • Benchmark: Scores consistently in the "easy" range (typically 5-7 on a 7-point scale) indicate good customer effort levels.

4. Product Usage Frequency

  • Description: Tracks how frequently a customer interacts with the product.
  • Importance: Higher frequency often correlates with higher dependency and satisfaction.
  • How to Measure: Monitoring logins and usage patterns over specific periods.
  • Formula: Frequency = Number of logins per period
  • Health Score Integration: Frequent use boosts health scores, indicating active and engaged customers.
  • Benchmark: Daily or weekly active use is ideal, depending on the product type.

5. Customer Lifetime Value (CLTV)

  • Description: Predicts the total value a business can expect from a single customer account.
  • Importance: Essential for understanding return on investment in customer acquisition and retention strategies.
  • How to Measure: Calculate average purchase value, frequency of purchase, and average customer lifespan.
  • Formula: CLTV = Average Order Value × Purchase Frequency × Customer Lifespan
  • Health Score Integration: High CLTV can boost the health score, indicating a valuable and stable customer relationship.
  • Benchmark: Aim for a CLTV to CAC ratio of at least 3:1.

6. Support Interaction Frequency

  • Description: Number of times a customer contacts support within a given period.
  • Importance: High interaction rates may indicate problems or high engagement—context is key.
  • How to Measure: Track all customer-initiated support interactions.
  • Formula: Count of support tickets or calls per customer per month.
  • Health Score Integration: Excessive support may decrease health scores unless resolved positively.
  • Benchmark: Fewer than 2-3 interactions per month generally signify good product experience, depending on complexity.

7. Onboarding Completion Rate

  • Description: Measures the percentage of onboarding steps completed by new customers.
  • Importance: Successful onboarding is critical for long-term customer retention and satisfaction.
  • How to Measure: Track completion of key onboarding milestones.
  • Formula: Completion Rate = (Number of Completed Steps / Total Steps) × 100
  • Health Score Integration: Completion of onboarding steps can significantly increase the health score, indicating a committed customer.
  • Benchmark: Aim for at least an 80-90% completion rate.

8. Customer Satisfaction Score (CSAT)

  • Description: A key performance indicator that measures customer satisfaction with a product, service, or a specific interaction.
  • Importance: CSAT is crucial for assessing short-term satisfaction and pinpointing areas of improvement in customer service or product features.
  • How to Measure: Utilise post-interaction surveys that ask customers to rate their satisfaction on a scale, typically from 1 (very unsatisfied) to 5 (very satisfied).
  • Formula: CSAT % = (Number of Satisfied Responses (4-5 rating) / Total Responses) × 100
  • Health Score Integration: Direct input from CSAT can be used to gauge and adjust the health score, reflecting recent customer experiences and satisfaction levels.
  • Benchmark: Generally, a CSAT score above 80% is considered good, indicating high customer satisfaction.

9. Core Product Feature Usage

  • Description: Tracks how often and how extensively customers use the main features of a product, which are central to the product’s value proposition.
  • Importance: Understanding which core features are most and least used can help in refining the product and prioritising development efforts. High usage indicates good product-market fit and engagement.
  • How to Measure: Analyse usage data to identify frequency and duration of core feature utilisation by customers.
  • Formula: Usage Rate = Number of Active Users per Feature / Total Number of Users
  • Health Score Integration: Higher usage rates of core features should positively impact the health score, indicating strong engagement and potential satisfaction.
  • Benchmark: The optimal benchmark varies widely depending on the feature and industry but should be set based on expected interaction frequencies for successful customer outcomes.

10. Product Stickiness

  • Description: Measures how often customers return to use a product, indicating how 'sticky' or indispensable the product is in a customer's daily activities.
  • Importance: Sticky products typically see higher customer retention rates, as they become integral to users' daily routines or business operations.
  • How to Measure: Calculate the ratio of daily active users (DAU) to monthly active users (MAU); a high ratio indicates that users are returning to the product frequently.
  • Formula: Stickiness Ratio = (DAU / MAU) × 100
  • Health Score Integration: A high stickiness ratio can enhance the health score, indicating that the product is essential to users and part of their regular usage patterns.
  • Benchmark: Aiming for a stickiness ratio of 20% or higher is generally good, though this may vary based on the product type and usage expectations.

11. Tailored Metric: Specific to Your Needs

  • Description: Every company has unique aspects that are critical to their success. Whether it's 'Fleet Usage,' 'Overall Equipment Effectiveness,' 'Time Spent on Product,' or 'Utilisation of Online Resources and Training,' it's crucial to identify what matters most to your business.
  • Importance: Tailoring metrics allows for a deeper, more precise understanding of customer engagement and success.
  • How to Measure: This depends entirely on the nature of the metric chosen. Empra can assist in identifying and quantifying these metrics to integrate them into your Customer Health Score effectively.
  • Health Score Integration: Custom metrics provide additional insights and can be seamlessly integrated into your overall customer health strategy.
  • Benchmark: Set based on your specific business goals and customer expectations.

To explore which components you should add to your Customer Health Score, or to learn more about how these metrics can be customised and integrated into your business strategy, book a consultation with Empra.

This comprehensive overview of essential customer success metrics offers a detailed understanding of how to track, measure, and optimise customer engagement and satisfaction. Each metric provides valuable insights that can be directly linked to a robust health score system, guiding strategic decisions and operational adjustments.

Empra Consultancy’s Role in Shaping Customer Success

One of the most compelling aspects of robust customer success strategies is their direct impact on company revenue. Effective customer success initiatives, particularly those that enhance customer health and engagement, have been shown to significantly boost revenue by improving retention rates and increasing upsell opportunities. For a deeper dive into how customer success influences financial outcomes, read our blog on "Is Customer Success Key to B2B SaaS Revenue?" This piece offers insights into how strategic customer management translates into tangible revenue growth.

Empra’s Comprehensive Service Suite

CS LaunchPad: Our flagship four-month program meticulously crafts a robust Customer Success department from the ground up. This includes a custom CRM setup, strategic guidebooks, and expert support, culminating in a fully operational strategy that dramatically enhances customer engagement and retention.

CS LaunchForce: We specialise in the recruitment of top-tier Customer Success professionals, ensuring that your team is empowered with expertise that resonates with your company culture and strategic goals.

Advisory Services: Our flexible, expert advisory services are designed to optimise your customer interaction strategies and internal processes, providing you with the agility to respond to market demands and customer needs effectively.

LaunchPad Program: Comprehensive Customer Success Transformation

Empra's LaunchPad Program is meticulously designed to establish and enhance your Customer Success operations within four months. This program is crafted to provide a holistic and scalable foundation for customer engagement and retention, ensuring your early-stage B2B SaaS venture thrives in a competitive landscape.

What to Expect from the LaunchPad Program:

  • Customer Success Management
  • Retention & Expansion
  • CS Playbooks and Strategies
  • Feedback and Improvement System
  • CRM & Workflow Integration
  • Workflow & Process Design
  • Data Analysis and Reporting
  • Health Monitoring and KPIs
  • Training and Development

This comprehensive suite ensures that every aspect of customer success is not only addressed but optimised to foster growth and improve customer relationships. From the initial setup of a bespoke CRM to the integration of cross-functional strategies and in-depth data analytics, Empra equips your company with the tools and insights needed to succeed.


“Hugo has consistently exceeded our expectations, driving tremendous value and satisfaction among our clients.” - Results-Driven Strategist @ Gartner
“Hugo’s work in developing scalable CS processes has been instrumental to our growth and operational efficiency.” - Team Lead @ InvestorHub


Throughout this article, we've explored the pivotal role of customer success metrics in shaping the growth and sustainability of early-stage B2B SaaS companies. Understanding and implementing these metrics effectively is not just about tracking numbers; it's about driving meaningful engagement that leads to higher customer satisfaction and retention.

Key Takeaways:

  • Comprehensive Metrics: We discussed the top 10 essential customer success metrics, including Customer Sentiment, Net Promoter Score (NPS), and Customer Effort Score (CES), which provide deep insights into customer loyalty, satisfaction, and engagement.
  • Strategic Implementation: Empra's LaunchPad Program exemplifies how tailored strategies and tools, such as bespoke CRMs and advanced retention strategies, are crucial in operationalising these metrics.
  • Continuous Improvement: The importance of ongoing training, feedback systems, and health monitoring ensures that your customer success efforts are always aligned with the best outcomes for both your customers and your business.

As you seek to further enhance your customer success operations, consider the next step: integrating Empra's comprehensive suite of services into your strategy. Our expertise in establishing robust customer success frameworks and strategic enhancements is designed to propel your growth and ensure you maintain a competitive edge.

Getting Started with Empra

Interested in how Empra can transform your customer success strategy? Schedule a consultation call with us today to explore how we can integrate effective health scores and other metrics to enhance your customer interactions and drive your business towards greater growth and customer satisfaction.

Our expert consultants are prepared to tailor a customer success strategy that not only meets but exceeds your expectations, ensuring your company’s success in the dynamic SaaS market.

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