This is part four of a six-part series on each of the Categories of Focus suggested by the new standard Open Customer Metrics Framework (OCMF). Learn more about this modern, open framework and its five categories of focus in my first post on this topic.
OCMF suggests that executives should spend about 30% of their time on the needs of the business – the “Business Category” — which we’ll walk through here.
Leading customer success and support organizations have realized that we have fixated on cost and efficiency at the expense of a superior customer (and employee) experience or the value delivered. This is one category where we should pull back on some of what we currently measure and report on, to free up mind share to think about and act on some of the other categories of measures.
- Klever’s Law: Customer Time to Value = Time to Value (before sale) + Time to Value (after sale) + Time to Smile (after interruption). A powerful new emerging measure to align the customer experience and employee experience across internal departments.
- Time to Smile is the total elapsed time between when a customer has their ability to use the product/service interrupted to the time they got back to a happy state. Note: This is often called ‘Time to Resolution’ or ‘Time to Restore’.
Both these emerging measures shift the emphasis from internally focused numbers to those that are focused on end-to-end processes, from the customer’s point of view. This will require leadership and discussions with other groups. The common denominator of these measures is time, which is universal across departments.
We did not explicitly include Customer Success metrics, which we will collectively agree on and include in the next update of the (open) OCMF framework. However, the framework should be similar:
For executives the core Customer Success metric around profitability is rather straightforward:
- New customer revenue – Lost customer revenue + Expansion revenue = Net Annual Recurring Revenue.
- The other lens would be operational efficiency.
Get started today:
- Learn how your measures stack up against the Open Customer Metrics Framework with a free OCMF self-assessment (released under a Creative Commons license) from Klever Insight.
- Join the Open Customer Metrics Framework LinkedIn group and share your journey.