They measure the results of word of mouth marketing.

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They track how CSM engagement impacts customer behavior—for example, how many customers CSMs retain and how much revenue comes from retained customers, the additional revenue CSMs receive by offering support, etc.—and compare that amount to the budget allocated to the CS department.
They correlate NPS with LTV (or other business metrics).
They measure metrics that directly impact the customer, such as average initial response time and average resolution time, and conduct regular customer satisfaction surveys.
However, in order to calculate the actual ROI of Customer Success, it is important to understand the status quo and measure its impact on the baseline:

The "base" status represents the measured saudi arabia mobile database revenue from a CSM's account portfolio before they actually begin engaging with those customers.
Measurable impact is the revenue generated from actively engaging with the customers that sales managers manage, ensuring their successful onboarding and maintaining their interest in further expansion, renewal and cross-selling opportunities.
Keep in mind that quantifying these 2 variables is not easy as there are other factors responsible for the apparent growth of your customers.

At first glance, it seems that there is no specific metric that would help calculate the full stages of the customer life cycle beyond the baseline state, other than the metrics we typically use . So a possible solution to this problem could be to analyze the customer life cycle to determine the overall ROI of Customer Success. This works because if the customer's lifetime increases while it is being assessed and managed by CS departments, then its profitability also increases.

Consider implementing a customer success strategy today and learn how SalesAI can help you achieve better results for your business.