Justifying investment in customer success is far harder than justifying spend in sales and marketing. In episode #350, Ben walks through a practical framework for evaluating the ROI of customer success and retention programs by tying customer success investment directly to ARR, MRR, and revenue retention performance. Instead of relying on vague qualitative benefits, this episode outlines how finance and SaaS leaders can quantify retention improvements and translate them into real financial impact.

Resources Mentioned

Blog post on quantifying customer success and retention ROI: https://www.thesaascfo.com/quantifying-investments-in-customer-success-and-retention/

SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation

What You’ll Learn

• Where customer success should be classified on the SaaS P&L (COGS vs. Sales)
• Why customer success ROI is harder to quantify than CAC or go-to-market efficiency
• How to use MRR and ARR waterfalls as the foundation for retention analysis
• The difference between gross revenue retention and net revenue retention in ROI modeling
• How expansion, contraction, and churn act as independent levers in retention
• A scenario-based approach to estimating ARR impact from retention improvements

Why It Matters

• Helps justify customer success spend with real revenue and ARR impact
• Improves financial modeling and long-term financial strategy decisions
• Connects retention performance to unit economics and scalability
• Avoids over-investing in customer success without measurable outcomes
• Provides a clearer framework for board and investor discussions