Customer
Customer Health Score
Customer Health Score is a metric that combines various indicators to assess the overall health and satisfaction of a customer with a product or service. It helps predict customer retention, identify at-risk customers, and gauge overall customer engagement.
HOW TO MEASURE
The score is typically calculated by analyzing multiple factors such as product usage, customer support interactions, satisfaction survey results, payment history, and engagement levels. Each factor is weighted according to its importance, and the total score is aggregated to represent the customer's health.
HOW TO IMPROVE
Personalized Support: Offer tailored support and check-ins based on the customer's usage and feedback.
Proactive Communication: Reach out to customers regularly with updates, tips, and helpful resources.
Customer Feedback: Actively seek and incorporate customer feedback to improve the product and the customer experience.
Segmentation: Use customer segmentation to provide more relevant content, support, and product recommendations.
FORMULA
Customer Health Score = Weighted Sum of Various Factors
EXAMPLE
A SaaS company might consider factors like logins per month (20% weight), support tickets filed (20% weight), feature usage (30% weight), and customer survey scores (30% weight). A customer with high feature usage and survey scores but low support tickets and logins might have a health score like: Score=(0.8×30)+(0.2×20)+(1×30)+(0.5×20)=47 out of 100. This score helps the company understand where to focus their customer retention strategies.
DEPARTMENT USAGE
Customer Success: To monitor customer satisfaction and predict churn.
Sales: To identify upsell or cross-sell opportunities and manage account health.
Marketing: To tailor communications based on customer engagement and satisfaction levels.
Product Management: To align product development with customer needs and feedback.
View the collection of Metrics Workshops.