Customer Success Reporting for CSMs: Best Practices

Customer Success Managers (CSM) often find themselves buried under heaps of data, trying to decipher which metrics matter. With so many numbers available, it can be tricky to pinpoint the ones that truly reflect customer health and business impact. 

Add to that the challenge of creating reports that resonate with different audiences – whether it's executives looking for a high-level overview, sales teams wanting insight into upsell opportunities, or customers needing reassurance of value. 

By following best practices, tracking the right metrics, and choosing the right tools, you can build reports that drive results.

In this blog, we’ll cover the best practices for reporting including key metrics and KPIs you need to track, choosing the right tools, and creating effective report templates.

1. Track key Customer Success metrics and KPIs 

It’s crucial to first understand which metrics matter most for reporting. Tracking the wrong data points can lead to confusion and, ultimately, misguided decisions. 

Here are five essential metrics every CSM should include in their reports:

1. Customer health score

The customer health score combines data on usage, engagement, and satisfaction to give a comprehensive view of your customers' overall well-being. A healthy customer is likely to renew, while a low score can signal risk, enabling your team to intervene proactively.

2. Churn rate

Churn rate is the percentage of customers who stop using your product over a specific period. A high churn rate might indicate product issues, poor support, or gaps in customer engagement. Monitoring churn helps identify patterns that could be affecting long-term retention.

3. Customer lifetime value (CLV)

CLV is an estimate of the total revenue a customer is expected to generate throughout their relationship with your company. This metric helps you prioritize resources toward high-value customers and assess the ROI of your Customer Success efforts.

4. Net promoter score (NPS)

NPS measures customer loyalty by asking one simple question: How likely are your customers to recommend your product to others? It provides a quick snapshot of customer sentiment and can indicate future retention and referral opportunities.

5. Customer satisfaction score (CSAT)

CSAT measures how satisfied customers are with a specific interaction, such as a support request or product feature. This immediate feedback can help you make quick adjustments to improve the customer experience.

For a more in-depth breakdown of these KPIs, as well as additional metrics related to customer health, engagement, and financial performance, check out our full guide on KPIs.

2. Tailor reports to your audience

Different stakeholders require different levels of detail, so tailoring your reports is essential for them to be truly effective.

1. Executive team

Focus on high-level KPIs like churn rate, NPS, and CLTV. These metrics highlight the overall health of the customer base and its impact on revenue. Executives are typically interested in the broader business implications, so keep your reports concise and centered around trends and strategic insights.

2. CSMs and team leads

For those on the frontline, diving deeper into metrics like customer health scores, engagement levels, and support data is important. These details help the team prioritize customer interactions, identify risks, and make informed decisions in their day-to-day work.

3. Customers

When reporting to customers, showcase value realization. Use metrics like product adoption rates, achieved milestones, and any relevant ROI to illustrate how your solution is benefiting them.This not only strengthens relationships but also reinforces the value of your partnership.

3. Standardize and automate your reporting process

1. Implement standardized templates

Using consistent templates ensures your reports are comparable over time, making tracking progress and identifying trends easier.

You can use Velaris’s customizable dashboard widgets for standardized templates, giving you flexibility and easy to read visualized reporting. 

2. Use automation tools

Automating data entry and report generation reduces the chance of errors and saves time. A Customer Success tool like Velaris which offers a drag-and-drop automation builder, will simplify your reporting workflow, allowing you to focus more on strategy and less on manual tasks.

Now that you know how to customize and streamline your reporting process, let’s explore how to create effective Customer Success report templates that meet these diverse needs and make your data even more actionable.

4. Create effective Customer Success report templates

Once you’ve determined what metrics to track and how to tailor your reports to your audience, the next step is creating a consistent report template. 

A well-structured template not only saves time but also ensures that your reports are clear, comprehensive, and easy to update. Key components of a template include:

1. Executive summary

Start with a high-level overview of key findings and actionable insights. This section should briefly outline the most important trends and recommendations, allowing busy executives to grasp the report's main points quickly.

2. Customer health summary

Provide a snapshot of customer health scores, highlighting at-risk accounts and growth opportunities. This helps prioritize customers who may need immediate attention or have potential for expansion.

3. Key metrics dashboard

Use visual representations like charts and graphs to display core KPIs such as NPS, churn rate, and CLV. Visuals make complex data easier to digest and can quickly communicate trends or changes in customer behavior.

4. Customer feedback analysis

Summarize recent NPS, CSAT, and CES survey results to offer insights into customer sentiment. This analysis can help identify common issues or areas where the customer experience could be improved. 

5. Choosing the right tools for Customer Success reporting

Choosing the right tools for Customer Success reporting can greatly affect how efficiently you manage and present your data. Here are some key features to look for when selecting a Customer Success reporting tool:

1. Integration capabilities

Your reporting tool should be able to pull data from various sources like sales, marketing, support, and product teams. This allows you to create a comprehensive view of customer health and performance without having to switch between multiple platforms.

You can do this effectively with Velaris which integrates data from multiple sources. This gives you a real-time, consolidated view of customer health in one place.

2. Customization

Look for tools that offer flexible dashboards and customizable reports. Every organization has unique needs, and being able to tailor your reports to specific audiences and goals is crucial for effective communication.

3. Automation

Automating report generation and scheduling can save you significant time and reduce manual errors. Trigger-based alerts are also useful for keeping track of key metrics and receiving updates when specific conditions are met.

Velaris makes Customer Success reporting easier by offering powerful automation and customization features. You can automate report generation and tailor dashboards to focus on the metrics that matter most to your organization.

With these tools in place, you can establish a strong foundation for an effective Customer Success reporting strategy.

Conclusion

Effective Customer Success reporting is key to understanding your customers’ needs, tracking your team's impact, and aligning your organization around Customer Success goals. 

By focusing on the right metrics, tailoring your reports to the needs of different stakeholders, and using tools that streamline the reporting process, you can create valuable insights that guide decision-making and enhance customer relationships.

With powerful automation, customizable dashboards, and seamless data integration, Velaris can help you keep your reports accurate and relevant, so you can focus on taking the right actions at the right time.

If you’re looking to streamline your reporting process and gain deeper insights into your Customer Success efforts, book a demo today to see what Velaris has to offer. 

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