Which of the following metrics is critical for customer success management?

Customer Lifetime Value (CLV) is a critical metric for customer success management because it reflects the total revenue a business can expect from a single customer account throughout the business relationship. Understanding CLV allows organizations to assess the long-term value of their customer relationships and make informed decisions about customer acquisition, retention strategies, and resource allocation.

In customer success, the goal is not only to maintain customer satisfaction but also to maximize the profitability of each customer relationship. A higher CLV indicates that customers are deriving value from the product or service and are likely to remain loyal over time, which is essential for sustainable growth. This metric informs customer success teams about where to focus their efforts to increase retention and upsell opportunities, directly impacting overall business success.

The other metrics listed, while important in their respective contexts, do not directly focus on managing the customer relationship in a way that enhances long-term success and satisfaction.