Discover how to assess customer health and drive business growth
Understanding the health of your customer base is crucial for minimizing churn and identifying opportunities for expansion. “The Customer Health Score Handbook” provides a comprehensive, step-by-step guide to
building a customer health scoring program, helping you predict customer health, prevent surprise churn, and grow your accounts.
What’s inside
Customer health scores in a nutshell
A customer health score is a metric that evaluates a customer’s engagement and satisfaction with your company. These scores help identify at-risk customers and target expansion efforts for your most successful clients. Health scores can be represented by points, letter grades, or color codes and require multiple data sources to be effective.
Common predictive factors of customer health
Effective health scores balance quantitative data (like product usage) and qualitative data (such as customer sentiment). The handbook details various factors influencing customer health, including customer fit, product fit, engagement levels, and external risks. Understanding these factors helps you tailor your approach to different customer segments.
Why one health score isn’t enough
Different customer segments and lifecycle stages require unique health scores. For example, the health score for an onboarding customer will differ from that of a long-term customer. The handbook explains how to assign multiple health scores based on product type, subscription type, customer segmentation, and tenure.
Seven steps for building a customer health score
- Identify customer segments: define and divide your customer base by characteristics and needs.
- Determine healthy vs. Unhealthy behaviors: identify behaviors that signify customer health and those indicating risk.
- Pick scoring criteria: choose relevant metrics to measure customer health.
- Create a grading scale: develop a system to assign grades to health scores.
- Weigh each factor: determine the importance of each factor in predicting churn.
- Allocate points: award points based on customer behaviors.
- Make scores actionable: use automation to maintain accurate scores and prioritize outreach.
Tips for launching a customer health scoring program
Launching a customer health scoring program requires practice and refinement. The handbook offers tips on building and maintaining your health scores, including training your team, tying incentives to scores, and visualizing the financial value of customer satisfaction.
