Mastering Growth Metrics with Jay Nathan

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Hey CS pros,

In the latest episode of the Customer Success Pro Podcast, I had an insightful chat with Jay Nathan, COO at Churnkey, about a topic on every CS leader’s mind—metrics that matter. Jay’s extensive experience in SaaS and customer success brought a unique perspective on using metrics to drive both team and company growth. Together, we explored not just which metrics to focus on, but how they play a role in everything from retention to revenue.

We started by exploring the top metrics that matter most in SaaS—like Net Revenue Retention (NRR), Gross Retention Rate (GRR), and customer lifetime value. But Jay went beyond the usual KPIs, explaining why CS leaders also need to be familiar with broader business metrics such as gross margin and EBITDA to better align CS goals with the company’s strategic direction. Jay argues that understanding these metrics is essential for CS leaders who want a true seat at the table.

This episode is packed with insights that can help CS pros better understand the numbers that drive their success—and take actionable steps to turn those insights into impact. Whether you’re a CS leader or an aspiring one, you won’t want to miss it! Listen to the episode now!

❓️ Some of the questions I ask Jay in our conversation:

❓️Beyond customer-facing metrics, what operational metrics should CS leaders track to measure the success of their teams/company?

❓️ How do you see the future of customer success metrics evolving?

❓️ What is one piece of advice you would give them when it comes to selecting, tracking, and acting on customer success metrics?

Episode Highlights:

Jay emphasized the need for CS leaders to understand metrics beyond just their CS dashboards, especially in today’s evolving SaaS landscape. Here’s what we discussed:

1. Top Metrics for Growth and Efficiency: Jay highlighted the importance of tracking both growth and profitability in SaaS. While NRR and GRR often dominate the conversation, he shared why CS leaders should also understand broader business metrics like gross margin and EBITDA to align better with company-wide goals.

2. How Metrics Drive Daily Operations: We discussed how high-level metrics can guide operational strategies. For instance, knowing your Time to First Value and Activation Rates can provide actionable steps for teams to drive product adoption and increase retention.

3. Agility in a Changing Environment: With experience ranging from startups to large-scale enterprises, Jay stressed the importance of regularly evaluating metrics as the business grows. What matters for a startup might evolve as a company scales, making it essential to adapt your approach over time.

3 Key Takeaways

📊 Be Agile with Your Metrics

Jay emphasized that while high-level metrics (like growth and retention) remain consistent, the daily operational metrics that help achieve these goals should adapt based on customer needs, market conditions, and company growth stages. Staying agile with your metrics is essential.

📈 Know the Leading Indicators

Identifying the key activities that drive results, such as engagement metrics or time to first revenue, allows CS teams to focus on proactive measures. Jay stressed that understanding and acting on these leading indicators helps ensure both short-term wins and long-term growth.

💼 Alignment with Business Goals

Jay highlighted the need for CSMs to advocate for themselves and their teams by demonstrating how CS efforts impact broader business objectives. Being able to link your team’s work to revenue or retention helps elevate CS from a cost center to a core growth driver.

Have a listen to the latest podcast on Spotify, Apple Podcasts, or Youtube and make sure to let me know what you think!

P.S. Want to dive deeper into CS Metrics? Check out Jays’s newsletter and resources here.

That's all for now.

I hope you’ve found this newsletter helpful. If you did find it helpful feel free to forward it to a friend or a colleague, sharing is caring! If you have any questions or suggestions, please feel free to contact us.

Cheers to your CS success,

Anika