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Best Practices Guide for Setting up Health

Understanding the health of the customer at various stages has become paramount for the Customer Success Managers especially in the SaaS business. If configured right, the Customer Health Score not only helps you proactively monitor the health of customers but also helps you with identifying the accounts that are at Risk. 

Health scores also help you to understand the leading indicators and thus help you plan proactive communication with the customer.

What is a customer health score?

It's a useful metric for understanding a customer's overall health, as well as the health trends for a segment of accounts or the business as a whole.

Is Health a Product Adoption Score?

No..not exactly. While most people confuse  Product Adoption score with the overall Customer Health Score, there are several other dimensions that you should consider while configuring health for various segments of your customers.

Health at B2B SaaS can not be formulated keeping just one parameter in mind. Take the example of your own health. It can mean several things like physical, mental, financial, relationship health. 

While determining the Health of a customer, you should consider the following  dimensions:

  1. Product Adoption Health - How the customer is adopting your product & is s/ he able to get to the core product value.

  2. Financial Health - Is the customer paying the subscription/ invoices on time?

  3. Relationship Health - How good is your CSM’s rapport with their Product Champion? How frequently are you communicating with your customers?

  4. Service Health - Is that critical ticket raised by the customer resolved? Are they getting the right answers to their queries?

  5. External factors -  Are you considering the external factors (beyond your control) that are affecting the health?

Let’s take a look at a few examples of each of the parameters:

  1. Product Adoption Health

    • Good Health - Used X features in Y days

    • Poor Health - Have not used Feature A in lifetime

    • Poor Health - X users are inactive in the last Y days

  2. Financial Health

    • Good Health - Customer subscribed to an advanced plan(higher plan)

    • Poor Health - Customer downgraded the plan

    • Poor Health - If the invoice is due in the last X days

  3. Service Health

    • Good Health- If all the open tickets are resolved

    • Poor Health- If X  high priority ticket is open in the last Y days

    • Poor Health- If the customer has given bad feedback on the support portal

  4. Relationship Health

    • Good  Health - When you have certain touchpoints with customers in the last X days. Touchpoints can be your visit to a customer, customer attending your webinars, Quarterly Business Reviews (QBR), phone calls, zoom meetings, etc.  

    • Poor Health- If there are less than X touchpoints in the last X days.

    • Poor  Health- If your last communication was X days ago.

  5. External Factors/CSM Sentiments

    • Good Health  - Positive Confidence tags: Done a Case study together, the customer has shared a referral or a review

    • Poor Health- Risk Tags:  Champion left the organization, Company is getting acquired, Management and strategy changed.

Get in touch with your Customer Success Manager at CustomerSuccessBox to configure your parameters for setting up the right health score for various segments of your customers.

Want to configure in CustomerSuccessBox now? Click here to see the configuration details.

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  1. Anu Dudhat

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