In general terms, a Customer Health Score is basically a value, designed to indicate the long-term prospect for any person, mainly customer, to drop off. It also indicates for how long a customer is going to be a high-value repeat customer through the procedure of cross-selling, renewal or even up-selling norms.
Previously, people had no clue on what these customer health scores are. But, with passing time, it was realized that it is one kind of “business survival score” that companies are looking for these days. There are some major criteria that companies use for calculating the customer health scores.
Own simple ranking system of companies like Upscope:
Depending on the core usage factor, some companies like Upscope have their own ranking system. The co-browse option from such centers is meant for 30% faster onboarding service and support of the customers by what they got to experience instantly.
- The major health factor such companies considers happens to be the usage value.
- The health score is mainly depended on the usage factors like how many agents are going through it, the number of hours they are using it for and even the number of customers they get to share the screen with.
- This simple factor of measuring usage deserves a lot of care. You have to check the number of seconds used in the previous month and how much they get to spend every second.
As here, the factors are measured using multiple units, they are ranked from the scale 0 to 100, with 100 score given to the major 5%. Therefore, outliers with maximum usage will not put others at zero.
Some companies divide it between relationship and product:
Some companies recommend some simple measurements to identify those customers who are actually at risk. It will define some of the sub-categories to note if a customer is at risk. Some of those examples are:
- Reduced usage with no or even small use of major features.
- No supportive conversations or too many of them, and with lower survey scores.
- An immediate and sudden stop in speaking engagements or references
- Some of the overdue invoices, and even a combination of all the points just mentioned.
Then you have other companies, which will mark the customer account health by defining actions to measure all the sub-categories as mentioned. These specified actions are taken to measure points like customer interactions and logins for each sub-category. The results are placed under two categories, namely Relationship and Product. Product needs to make around 60% of the total score with the remaining 40% going towards Relationship. Each one of the sub-categories will be scored out of 5 with 1 being the danger zone and 5 as a healthy one.
Trying to map out the customer’s journey:
Mapping customer’s journey will help a company to create the perfect Customer Health Score. There are basically 5 steps, which help you to map your customer’s journey for the final health score.
- First of all, if you aren’t confident in the data you received, there’s no point to proceed with the said exercise.
- Once confident enough, you better segment data by its importance. Start segmenting it by size, stage and location, such as, trial, prospect and deployed; small, medium and enterprise, to name a few.
- Make sure to get the criteria measured by mapping the journey of your customer to return on investment or ROI. Start measuring customer’s journey from its open rates on email they sent by inviting colleagues to your platform. Follow the measurement routine throughout the entire journey to target what you think ROI is for your notable customers.
- Get into a thorough conversation with your product engineers to procure data showing feature adoption, usage, and more. After getting the data you need, match it to the above criteria. Create a spreadsheet with all the information in a row.
- Now, the final step is to add segments right from the second step to sheet and finally crunching the numbers to determine red, yellow and green.
Learning the customer account health is really important as that shows the current position of your company. Maintaining a score of your customer’s account health will help you realize if that customer is here for a long term or not.