5 Customer feedback metrics every SaaS should track

Tracking customer feedback is critical for SaaS success. Here are the 5 essential metrics to focus on:

1. Net Promoter Score (NPS): Measures customer loyalty and likelihood to recommend your product.
2. Customer Satisfaction Score (CSAT): Tracks satisfaction after specific interactions or features.
3. Customer Effort Score (CES): Evaluates how easy it is for customers to complete tasks or get help.
4. Product-Market Fit (PMF) Score: Assesses how well your product meets market needs.
5. Feature Adoption Rate: Tracks the percentage of users engaging with specific features.

Why These Metrics Matter:

• Retention: A 5% increase in retention can boost profits by over 25%.
• Customer Loyalty: 89% of customers switch to competitors after one bad experience.
• Actionable Insights: These metrics help identify pain points and growth opportunities.

Quick Comparison Table:

Metric	Purpose	Key Insight	When to Use
NPS	Measures loyalty	Growth potential	After key milestones
CSAT	Tracks satisfaction	Service or feature feedback	After interactions or updates
CES	Evaluates effort	Friction points in user experience	After support or onboarding
PMF Score	Checks product-market alignment	Market fit and product demand	Regular intervals (e.g., 6 months)
Feature Adoption Rate	Monitors feature engagement	Feature success and usability	After new feature launches

These metrics, when combined, provide a complete picture of customer sentiment, loyalty, and engagement. Focus on them to reduce churn, improve retention, and drive SaaS growth.

Customer Experience Metrics: NPS, CSAT or Customer Effort: Explained!

1. Net Promoter Score (NPS)

NPS is a widely used metric in B2B, with 41% of businesses relying on it to measure customer loyalty ^[3]. It’s a simple way to understand how likely customers are to recommend your SaaS product.

How NPS Works

You ask customers: "How likely are you to recommend us to a friend or colleague?" on a scale of 0–10. Based on their answers, they fall into one of three groups:

• Promoters (9–10): Loyal enthusiasts who will keep buying and refer others.
• Passives (7–8): Satisfied but unenthusiastic customers who are vulnerable to competitors.
• Detractors (0–6): Unhappy customers who can hurt your brand through negative feedback.

To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters. The result is a score between -100 and +100. For SaaS companies, a score above 36 is considered solid since it aligns with the industry average ^[3].

Why It Matters for SaaS

NPS has a direct link to growth. Bain & Company found that businesses with top NPS scores grow more than twice as fast as their competitors ^[2]. Promoters are especially valuable - they drive over 80% of referrals, while Detractors are responsible for more than 80% of negative word-of-mouth ^[2].

Here’s how some leading SaaS companies rank on NPS:

Company	NPS Score
Nutanix	92
Zoom	72
Slack	55
Shopify	43
Salesforce	20

Turning NPS Into Action

What should you do with the feedback?

• Detractors: Reach out quickly to address their concerns ^[4].
• Passives: Keep them engaged by sharing updates and improvements ^[3].
• Promoters: Encourage them to refer others using referral programs or review sites ^[3].

The ideal time to send an NPS survey is after customers achieve a key milestone with your product ^[3]. Acting on the results promptly helps reduce churn and drive growth.

Up next, we’ll dive into the Customer Satisfaction Score (CSAT) to refine your feedback approach further.

2. Customer Satisfaction Score (CSAT)

CSAT measures how customers feel about specific interactions or features right after they happen. With 88% of companies relying on CSAT to gauge success ^[6], it’s a key tool for understanding short-term customer satisfaction. Let’s break down how to use CSAT effectively.

How CSAT Works

After important interactions, customers answer questions like, “How satisfied are you with your experience?” The score is calculated as the percentage of satisfied customers out of all respondents ^[8].

Here’s a quick guide to what CSAT scores mean:

CSAT Score	Interpretation
80–100%	Great
60–80%	Good
40–60%	Average
0–40%	Needs Improvement

When to Send CSAT Surveys

Timing is everything with CSAT surveys. Send them during these key moments:

• After onboarding
• Before contract renewals
• Following support interactions
• After releasing new features
• After major product updates

Pairing CSAT with metrics like NPS and CES can give you a broader understanding of customer sentiment.

Turning CSAT Into Action

The computer software industry averages a satisfaction score of 78% ^[7], which can serve as a benchmark for your SaaS. To make the most of your CSAT data:

• Strategic Placement: Place surveys in-app after tasks are completed, post-live chat, or at other critical points in the customer journey.
• Detailed Analysis: Dive into response trends, identify common pain points, track score changes after updates, and segment results by user groups.
• Quick Follow-Up: Address low scores promptly by identifying issues and implementing focused action plans.

While CSAT is a great tool, it has its limits. Since it relies on self-reported data, it can be influenced by response bias ^[5]. To get a fuller picture of customer sentiment, combine CSAT with metrics like NPS and CES.

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3. Customer Effort Score (CES)

Customer Effort Score (CES) measures how easily users can complete tasks, which directly influences their loyalty and likelihood to stick around.

Why CES Is Important

Research highlights a clear trend: 96% of customers who face high-effort service interactions become disloyal, compared to just 9% of those with low-effort experiences ^[9]. On the flip side, 94% of customers who report low effort are more likely to make repeat purchases ^[10].

How to Measure CES

CES surveys are most effective when sent immediately after key customer interactions. Data shows that low-effort experiences make customers 88% more likely to spend more, while high-effort experiences leave an 81% chance of negative word-of-mouth ^[12].

Where to Focus CES Measurement

Key moments to measure CES include:

• Product Onboarding: Inefficient onboarding can lead to customer churn, which accounts for 23% of churn cases ^[12].
• Feature Adoption: Check how easily users embrace new features.
• Support Interactions: Gauge customer satisfaction after service encounters.
• Account Management: Monitor the effort involved in subscription changes or renewals.

These touchpoints help identify where friction exists, providing actionable insights.

What Experts Say

"In the era of the 'NOW Customer,' website visitors expect quick resolutions or risk jumping to a competitor's site. Measuring customer effort is an important way to ensure today's consumers are having the best experience possible."
– Daniel Rodriguez, CEO at Currently Wine Co and former Chief Marketing Officer at Simplr ^[11]

Ways to Reduce Customer Effort

Here are some practical strategies to make things easier for your customers:

• Simplify UI/UX: Make navigation intuitive and reduce unnecessary clicks.
• Expand Self-Service Options: Provide FAQs, video tutorials, and other resources.
• Improve Support Systems: Use AI chatbots for fast, effective assistance.
• Communicate Proactively: Notify users of potential issues before they encounter them.

Tracking Progress

For example, one software company reduced its CES score significantly by cutting down its support form fields from 10 to just 3 ^[13]. Small changes like this can have a big impact.

4. Product-Market Fit Score

Did you know that 42% of startups fail because they don’t meet market needs ^[15]? That’s where the Product-Market Fit (PMF) Score comes in - it helps measure how well your SaaS product aligns with what the market wants.

The 40% Rule

Here’s a simple benchmark: if at least 40% of your surveyed customers say they’d be very disappointed if they could no longer use your product, you’ve hit product-market fit ^[14].

How to Measure PMF

Superhuman’s framework is a great way to evaluate PMF. It focuses on active users (those who used the product in the last two weeks) and asks these four key questions ^[19]:

• How would you feel if you could no longer use the product?
• What type of people would benefit most from the product?
• What’s the main benefit you receive?
• How can we improve the product for you?

Red Flags to Watch For

If you notice any of these warning signs, it could mean your product isn’t resonating with the market:

• Growth rate stuck below 10% monthly after hitting $10,000 in MRR ^[18]
• Relying too much on discounts to attract customers
• High churn rates
• Feedback that shows you're missing the mark
• Low engagement from users

How to Track PMF

To stay on top of PMF, focus on these three steps:

• Regular Check-Ins: Run PMF surveys every six months to spot trends and adjust early ^[17].
• Key Metrics to Monitor: Keep an eye on these numbers:

  Metric	Purpose	Target Indicator
  User Retention Rate	Tracks long-term value	Should improve over time
  Trial Conversion Rate	Measures initial product appeal	Above industry average
  Active Users	Shows ongoing engagement	Consistent growth
  Customer Lifetime Value	Reflects overall satisfaction	Positive trend

• Actionable Plans:
  • Dedicate half of your product roadmap to solving issues casual users face.
  • Use the other half to improve features your most loyal users love ^[20].
  • Build feedback loops across multiple channels.
  • Respond quickly to customer input.

A Real-World Example: Slack

Slack nailed its PMF back in 2013. They started small, beta-testing with 6–10 customer companies. From there, they gradually expanded to larger teams, collecting feedback through NPS surveys and in-app widgets ^[21].

"Product/market fit means being in a good market with a product that can satisfy that market" ^[16].

5. Feature Adoption Rate

Tracking feature adoption helps you understand how users interact with your product beyond just satisfaction scores or loyalty metrics. This metric shows the percentage of users engaging with specific features. The average adoption rate is 24.5% ^[22], making it an important factor in improving user engagement and product performance.

Understanding the Adoption Funnel

The adoption funnel helps visualize user progress through different stages of feature engagement:

Stage	Metrics Example	Industry Benchmark
Exposure	40% see the feature	HR products: 31% [23]
Activation	35% try the feature	FinTech: 22.6% [23]
Usage	20% use regularly	Sales-led: 26.7% [23]
Used Again	10% use repeatedly	Product-led: 24.3% [23]

These stages provide a clear picture of where users may drop off and where improvements can be made.

How to Calculate Feature Adoption

The formula for calculating feature adoption is straightforward:
(Feature MAU / Total Logins) × 100% ^[24].

This calculation helps you quantify how well users are adopting a specific feature.

Improving Feature Adoption

Here are some proven strategies to increase feature adoption:

• Smart Feature Introduction: Announce new features across multiple channels. For example, Linear showcases updates prominently on its homepage ^[25].
• In-App Guidance: Micro100 saw better adoption rates by providing interactive walkthroughs and a resource center within their app ^[25].
• Engagement Tactics:
  • Host targeted webinars
  • Use interactive tooltips
  • Offer personalized onboarding experiences
  • Build an in-app resource center

"Feature adoption metrics don't just show you what's happening, they help you understand how it's all connected." - Userpilot Team ^[22]

Industry Benchmarks

Here are some benchmarks to help you gauge success:

• Companies earning $5–10M annually achieve the highest core feature adoption rate at 30.4% ^[23].
• Sales-led companies tend to outperform product-led ones in adoption rates (26.7% vs. 24.3%) ^[23].
• A good target for most SaaS products is a feature adoption rate between 20–30% ^[22].

Measuring Success

To measure success, focus on metrics like:

• Time to first use
• Frequency of access
• Retention rates after launch
• Drop-offs at different funnel stages

These indicators will help you fine-tune your product and improve overall user engagement.

Conclusion

The five metrics - NPS, CSAT, CES, Product-Market Fit, and Feature Adoption - offer a fresh approach to evaluating and acting on customer feedback for SaaS businesses. Research shows that even a 5% increase in customer retention can lead to profit growth of up to 95% ^[27].

Integration Strategy

To get the most out of these metrics, integrate them into a centralized system. This not only simplifies operations but also reduces costs and increases revenue ^[26]. Here's a quick guide on prioritizing their implementation:

Metric	Priority	Primary Business Impact
NPS	Immediate	Boosts loyalty and referrals
CSAT	High	Improves service and support
CES	Medium	Enhances user experience
Product-Market Fit	Strategic	Shapes product development
Feature Adoption	Ongoing	Drives user engagement

Driving Impact

A report by Merkle reveals that 66% of consumers prioritize experience over cost ^[26]. Here's how you can act on this insight:

• Centralize Your Feedback System
  Set up a unified hub to gather and analyze feedback efficiently. For example, Wistia's "Dev on Point" system connects customer champions directly with developers to resolve issues quickly, streamlining their development process.
• Establish Clear Communication Channels
  According to the Word of Mouth Marketing Association, positive experiences shared through word-of-mouth drive 13% of consumer sales, contributing to $6 trillion in yearly spending ^[26].

"The single greatest predictors of customer satisfaction are the customer experiences that result in attributions of quality." – Qualtrics ^[26]

Future-Proofing Your Feedback Strategy

As we approach 2025, data-driven decision-making will become essential for optimizing nearly every aspect of work ^[1]. To stay ahead, focus on:

• Automating feedback collection
• Personalizing customer interactions
• Building continuous feedback loops
• Maintaining proactive communication

"Having worked with over 300 SaaS companies – as well as Enterprise Software vendors migrating to SaaS – I can say without a doubt that Customer Success must be a fully-integrated, tightly-coupled component of a complete SaaS Business Architecture. Why? Simply put: No Customer Success = No Your Success." - Lincoln Murphy

Using these metrics effectively can strengthen customer loyalty and pave the way for sustained growth.