CS ROI Without the Hand‑Waving
Attractive aggregate metrics can conceal the details we need to make informed decisions. Separate activity from effect and keep the math boring and consistent.
Useful, defensible formulas:
- Net Dollar Retention (NDR): (Starting ARR + Expansion − Contraction − Churn) / Starting ARR
- Gross Revenue Retention (GRR): (Starting ARR − Contraction − Churn) / Starting ARR
- Adoption Lift: Post‑play active users ÷ Pre‑play active users
- Customer Effort Score (CES): average score on “It was easy to accomplish X”, 1–7