IMPACT framework for Customer Success
To get the rewards of CS as a revenue driver, we must first understand how to measure the CS function and how it supports customers.
At its core, Customer Success supports at least three objectives: Onboard (CR5), Retain (CR6) and Expand (CR7). Each of these objectives contributes to revenue growth and profitability, showing both how effective a team is at helping customers move through these stages, as well as the impact of each on revenue.
As demonstrated in Figure 4, CR6 and CR7 operate on a continuous loop (either monthly or annually depending on contract length). By constantly multiplying CR6 and CR7, exponential revenue impact is created. This never-ending loop means that CLV is compounded: a one percent increase or improvement in one metric creates an enormous difference when it is applied over an extended period of time.
Most relevant during:
PMF phase
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K
