Which of the following is a key performance indicator (KPI) for measuring customer success?

Net Promoter Score (NPS) is a fundamental key performance indicator (KPI) for measuring customer success because it directly assesses customer satisfaction and loyalty. NPS is calculated based on customers' responses to the question of how likely they are to recommend a company's product or service to others. A high NPS indicates that customers are not only satisfied but are also willing to promote the business, which is a strong indicator of customer success.

In the context of customer success management, NPS serves as a vital feedback mechanism that helps organizations understand customer perceptions and experiences, guiding improvements and fostering long-term relationships. Unlike metrics such as employee turnover rate, product development cost, and market share growth, which focus on internal operational efficiencies and market position, NPS is centered around the customer’s voice, making it a critical tool for assessing how well a company is meeting its customers' needs and expectations.