You’re feeling pretty good about your customer engagement metrics.
The data shows that users are logging in daily, clicking around, and seemingly making the most of your platform. But hold on.
Your churn numbers are still concerning. Contraction at renewal is creeping up. And expansion is way lower than it should be.
Something doesn’t add up, right?
You’re caught in what we at Impact Weekly call the “Usage Trap”—a deceptive metric that makes you think you’re doing great when you might be far from it.
So why does high usage often translate to a false sense of security?
Let’s break down this complex puzzle and guide you toward a more meaningful Customer Success strategy—one that actually impacts the bottom line.
Customer Success Podcast: Impact Weekly Episode 41
If you want to go deep on this topic, listen to this episode of our Customer Success podcast, Impact Weekly, that comes out every Wednesday. You can listen below or on your favorite podcast app:
The Illusion of High Usage
You might think that if a customer uses your platform a lot, they must be getting value from it.
But here’s the kicker: usage does not equal value.
We’ve seen instances where usage metrics were sky-high but led to customer burnout, feature fatigue, and, eventually, to churn.
The reality is that usage can often be a vanity metric, seductive yet shallow in what it reveals about customer health.
Success Gaps: The Silent Saboteurs
Imagine a world where all your customers are using your product but not achieving their goals with it. What you have here is what we refer to as “Success Gaps.”
A Success Gap is the gap between what you think represents the customer’s success and what they think equates to success.
It’s easy to think you’re doing a great job when users are active. Still, if their activity isn’t aligning with their ultimate goals, then you’re setting yourself up for a rude awakening.
And believe me, that awakening usually comes in the form of churn or contraction.
The Importance of Goal Alignment
The key in this whole setup is understanding your customer’s goals.
We’re not just talking about high-level, nonspecific objectives like “increase revenue by 20%” but more specific goals related to your product. Do they want to streamline their workflow? Enhance team collaboration? Save time on mundane tasks? And in what timeframe?
Knowing this helps you create a contextual framework around those usage metrics.
Essentially, without aligning with your customer’s goals, you’re sailing a ship without a compass.
Intervening When Goals Aren’t Met
Even with high usage, there’s a moment when you must intervene if you see that the goals aren’t being met.
This is what separates World-class Customer Success teams from average ones.
Don’t just look at the dashboard and think, “Hey, this customer is logging in every day; they must be happy.” Instead, think, “This customer is logging in every day, but are they achieving what they set out to achieve?”
If they aren’t, it’s time to step in, see what’s going on, and course-correct where necessary.
Metrics Are Good, But Context Is King
No metrics exist in a vacuum. Success is always multifactorial.
It’s crucial to interpret usage within the broader context of customer goals and expectations.
This doesn’t mean you should abandon tracking usage or other activities; they’re essential, but not sufficient on their own.
Usage is like the pulse of your customer—important, yes, but it doesn’t give you the full health report.
For that, you need context, dialogue, and the ability to connect the dots between different kinds of data.
Make an Impact… Weekly
Don’t miss out on the insights that could revolutionize your partner relationships. Ensure you’re at the forefront of customer success management by subscribing to our Impact Weekly podcast.
Every Wednesday, we delve into a new aspect of customer and partner success, equipping you with the knowledge you need to thrive in the multi-channel landscape. Subscribe now, and let’s keep learning together.
About Lincoln Murphy