The Only 3 Customer Success Metrics That Actually Matter for Building a $100M ARR Business with ChurnZero’s CEO

Look, we all obsess over NRR and NPS. And yes, those metrics matter – especially when you’re raising that next round or reporting to the board. But here’s the truth that 90% of SaaS companies miss: if you’re running Customer Success, those trendy metrics aren’t enough. Not even close.

You Mon Tsang, CEO of ChurnZero, and CS leader Kaylin Law came to SaaStr Annual to dig into the metrics that actually move the needle for CS teams. Not the vanity metrics. Not the board slides. The real stuff that drives customer retention and builds sustainable growth.

1. UFR (Up For Renewal) – The Foundation Metric That Makes or Breaks Your CS Organization

Here’s a shocking truth: most CS teams, even at $50M+ ARR companies, don’t know how to calculate their true Up For Renewal number. And that’s not just bad – it’s catastrophic.

UFR is your ground truth. It’s the clean number that tells you exactly how many dollars you can retain. Without it, you’re essentially building a CS organization on quicksand.

The Real Way to Calculate UFR

First, let’s get tactical. Your UFR calculation needs to include:

• Base subscription value
• Add-ons and modules
• Professional services tied to renewal
• Any contracted escalators or pre-negotiated changes

Building Your UFR Machine

Here’s your 90-day plan to fix this:

1. Week 1-2: Data Audit

• Map every single source of renewal data
• Document all current calculation methods
• Identify gaps and inconsistencies

2. Week 3-6: Process Definition

• Establish your single source of truth (usually Salesforce or your CRM)
• Define clear ownership of UFR data
• Create validation rules to prevent dirty data
• Build automated alerts for data anomalies

3. Week 7-12: Operational Integration

• Train every CS manager on UFR calculation
• Create weekly UFR review cadence
• Build UFR dashboards for different stakeholders
• Establish monthly reconciliation process with Finance

Common UFR Pitfalls to Avoid

1. The Multi-Year Contract Trap

• Don’t count the full contract value
• Break down by annual renewal exposure

2. The Services Confusion

• Clearly separate recurring vs. one-time services
• Document renewal implications for each service type

3. The Currency Challenge

• Standardize on a single currency for reporting
• Build in exchange rate protocols

2. GRR (Gross Revenue Retention) – Your Early Warning System for Product-Market Fit

Here’s why GRR matters more than you think: NRR can hide a multitude of sins. You could have 120% NRR and still be building on a foundation of sand. But GRR? GRR tells you if your product and service actually work.

The Math Behind Great GRR

Target these benchmarks:

• Enterprise SaaS: 90-95% GRR
• Mid-market: 85-90% GRR
• SMB: 80-85% GRR

Anything less? You’ve got fundamental problems to fix.

Building a GRR Machine

1. The Investment Formula

• 5-15% of revenue goes to CS (scaled by ACV)
• For enterprise ($100k+ ACV): 12-15%
• For mid-market ($25-100k ACV): 8-12%
• For SMB (<$25k ACV): 5-8%

2. The Onboarding Excellence Framework

• Day 1-30: Technical setup and core feature adoption
• Day 31-60: Advanced feature activation
• Day 61-90: Business value realization
• Measure and track each phase separately

3. The Process Playbook

• Map every customer touch point
• Build health scores for each lifecycle stage
• Create intervention triggers
• Automate where possible, but never at the expense of effectiveness

Red Flags in Your GRR

Watch for these warning signs:

• More than 5% variance in GRR quarter over quarter
• Specific customer segments showing lower GRR
• Onboarding completion rates below 90%
• Time to first value exceeding 45 days

3. CSAT (Customer Satisfaction) – Your Real-Time Customer Health Monitor

Forget annual NPS surveys. If you’re only measuring customer satisfaction once or twice a year, you’re flying blind 90% of the time. CESAT is your real-time pulse on customer happiness.

Building a CSAT System That Works

1. Moment-Based Measurement Critical points to measure:

• Post-implementation milestone completion
• After support ticket resolution
• Feature adoption achievements
• Quarterly business reviews
• Training completion
• Professional services delivery

2. The Response Rate Game Target these minimums:

• Implementation surveys: 80%+ response rate
• Support surveys: 40%+ response rate
• Milestone surveys: 60%+ response rate

3. Segmentation Strategy Break down CSAT by:

• User role (executive, admin, end-user)
• Customer size
• Industry
• Product module usage
• Customer tenure

The Action Framework

1. Immediate Response Protocol

• <4 CSAT: CS leader intervention within 4 hours
• 4-7 CSAT: CS manager follow-up within 24 hours
• 8+ CSAT: Document success factors within 48 hours

2. Trend Analysis

• Weekly team review of CSAT trends
• Monthly executive review of patterns
• Quarterly strategic planning based on CSAT data

The Bottom Line: Your 30-60-90 Day Plan

First 30 Days

• Audit current UFR calculation methods
• Implement basic CSAT surveys
• Calculate current GRR baseline

Days 31-60

• Build UFR dashboards
• Launch moment-based CSAT program
• Create GRR improvement action plan

Days 61-90

• Integrate UFR into all CS processes
• Implement CSAT action protocols
• Launch GRR intervention program

Remember: NRR and NPS matter for the board. But these three metrics? They’re how you actually build a CS machine that scales to $100M ARR and beyond.

A final note: if you’re not measuring these metrics today, don’t panic. Start tomorrow. The best time to plant a tree was 20 years ago. The second best time is now.

Want more insights on scaling Customer Success? Join us at SaaStr Annual where we’ll dive even deeper with the best CS leaders in SaaS who’ve built these systems at scale.