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Customer success metrics and KPIs: the 8 worth tracking, and what each misses

By Draft First. Updated October 2026

Most CS dashboards track twenty numbers and act on none. Pick a few that connect to revenue and to the customer's results, know how each is calculated, and know what each one hides.

The eight

Metric	How to calculate	What it misses
Gross revenue retention (GRR)	(Starting ARR minus churn and downgrades) / starting ARR	Ignores expansion, so it can look harsh for growing accounts
Net revenue retention (NRR)	(Starting ARR minus churn and downgrades plus expansion) / starting ARR	A few big expansions can hide many small losses
Logo churn	Customers lost / customers at start of period	Treats a tiny account the same as your biggest
Time to first value	Days from contract start to the agreed first outcome	Only useful if "first value" is defined per customer
Health score mix	Share of accounts and ARR in Green, Yellow, Red	Only as good as the rules behind it
Renewal forecast accuracy	Forecast vs actual renewals at 90 days out	Rewards sandbagging if used to judge people
Executive engagement	Share of top accounts with an exec touch in 90 days	Counts meetings, not whether they mattered
CSAT or NPS	Survey average or promoters minus detractors	Low response rates, and unhappy quiet customers don't answer

A worked example

Q3 starting ARR: $2,000,000
Churned: $120,000 | Downgrades: $40,000 | Expansion: $260,000
GRR = (2,000,000 - 160,000) / 2,000,000 = 92%
NRR = (2,000,000 - 160,000 + 260,000) / 2,000,000 = 105%

NRR above 100% looks great, but GRR of 92% says 8% of revenue walked out. Report both.

Leading vs lagging

Retention numbers are lagging: by the time they move, it's too late. Health mix, time to value and executive engagement are leading. Review leading metrics weekly and lagging ones monthly or quarterly.

What to show leadership

GRR and NRR, with the trend.
Health mix by ARR, with the top Red accounts named.
One leading metric you're working to improve, and what you're doing.

To make health mix trustworthy, start with the customer health score template. For the weekly view, use the weekly report template.

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Questions

What are the most important customer success metrics?

Gross and net revenue retention, logo churn, time to first value, health score mix and executive engagement are a strong core set.

What is the difference between GRR and NRR?

GRR counts only losses. NRR also adds expansion, so it can be above 100%.

Which CS metrics are leading indicators?

Health mix, time to first value and executive engagement move before retention does.

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