You drive sustainable growth. But your CFO holds the keys. And it’s all too likely that your two teams operate in silos, speaking different numeric languages and prioritizing distinct objectives. If that dynamic sounds familiar, you’re not alone. Here’s why CS and finance need to work together to align around sustainable growth.
When your CFO doesn’t see the direct link between customer success and the financial metrics they track, it’s harder to persuade them to invest in CS—which can ultimately lead to preventable churn.
So how can you build a better working relationship with your CFO?
In our latest webinar, ChurnZero CEO You Mon Tsang and Maxio CEO Randy Wootton tackled the CCO-CFO disconnect head-on, digging into the shared and unshared metrics of each team to identify the common ground where CS leaders can bridge the gap. Watch it here, and find the three top takeaways below.
What are the top takeaways for working more effectively with your CFO as a customer leader?
1. Know the common ground that finance and customer success share.
“ARR, GRR, and NRR are the common language both teams can use to measure success,” says You Mon.
These metrics provide a shared framework that bridges the teams’ priorities, enabling clearer communication and mutual accountability between customer teams and CFOs.
Annual Recurring Revenue (ARR) reflects predictable recurring revenue. For CFOs, it’s a critical indicator of financial stability; for CCOs, it underscores customer commitment.
Gross Revenue Retention (GRR) measure the recurring revenue retained from existing customers, excluding upsells but accounting for churn. A strong GRR signals a stable customer base—essential for both financial forecasting and customer health assessments.
Net Revenue Retention (NRR) includes upsells, expansions, and churn. NRR above 100% demonstrates that your customer base is not only renewing but also growing.
Important: Make sure your measurements are consistent. ARR, GRR, and NRR are non-GAAP metrics, which means that their interpretations can vary. To ensure CFO and CCO alignment, standardize how your organization calculates these metrics (see here for a deeper dive into revenue metrics that matter to CS leaders) and be mindful of the ongoing debate around CS ownership and accountability that influences how these numbers are used.
2. Understand your CFO’s focus on efficiency and profitability.
“The CFO’s primary responsibility,” says Randy, “is to tell the CEO what the cash is, and ensure profitability.”
This means they’re laser-focused on the following metrics, which directly impact financial performance.
Gross Profit Margin measures the cost efficiency of delivering your product or service, factoring in costs like hosting and some customer support. As a CCO, understanding how your CS programs impact gross margins can help you make a stronger case for budget.
CAC Payback Period helps CFOs measure how long it takes to recoup customer acquisition costs through recurring revenue. The median payback period for SaaS companies is 14 months, but this varies by company size and contract value.
Logo Retention tracks the percentage of customers retained over a specific period, regardless of upsells or contractions. “Logo retention provides clarity on whether your customer base is stable, especially in markets where dollar-based metrics might mask churn within smaller accounts,” notes You Mon.
Your CFO’s focus on efficiency and profitability means that they’ll be open to collaborating on efficiency opportunities that don’t necessarily involve headcount cuts—such as leveraging AI and automation to increase customer value delivery at scale.
3. Take these initiatives to collaborate better with your CFO.
“Securing your customer base with strong gross retention is the foundation for growth,” says Randy.
These initiatives, which reflect that goal directly, will help you build a stronger working relationship with your CFO.
Show the financial impact of retention. CFOs understand how retention drives profitability, so highlight the ROI of investing in CS by tying improved GRR and NRR to long-term financial gains.
Use industry benchmarking data available in ChurnZero’s Customer Success Leadership Study, Maxio’s benchmarking tool, and SaaS Capital’s B2B SaaS Benchmarking Survey to contextualize your metrics.
For instance, SaaS companies with mid-market contracts typically aim for GRR above 90% and NRR exceeding 100%.
Collaborate on success plans that integrate both financial and customer-centric goals to keep both teams working toward shared outcomes.
‘Sit down with the person across the table,” says Randy, “and define what success looks like for this relationship.” Success plans should include measurable milestones, such as feature adoption timelines or implementation goals. Revisit them quarterly to ensure progress and alignment.
