What is the Customer Health Score?

The customer health score is a statistic that indicates whether a client is healthy or at risk. Customer success managers use it to estimate how a company’s connection with a customer will develop over time. Choosing a classification method is a subjective procedure that will vary from company to company. Regardless, it should aid product and customer success teams predict whether a client will grow, renew, or churn.

Why is the Customer Health Score is important?

Customer success managers need power users to know if their teams are putting their effort into the right places. This is where the customer health score comes in. Customer health scoring helps to identify account expansion opportunities.
Your power users are your “healthy” customers who use your product regularly. Power consumers are more likely to provide a review of your business on sites like G2 or Capterra if you ask for feedback. 

How do I create a customer health score?

There are many ways to create a customer health score. The followings are the main key ingredients:

• How much time does the average user spend using the product? What is the frequency of their return?
• The product’s breadth refers to how many users there are in a certain account.
• How many of the major aspects of the product are being used?

According to them, a healthy account has plenty of users who are logging in regularly and making significant use of the product. I have considered one with a few users who use the product frequently as an at-risk account. It would be a sign that the account is probably not gaining value from the product, which needs to raise an alarm before the subscription is up for renewal.

How can I improve my customer health score?

If you don’t use customer health scores, they are pointless. Your goal should be to increase health scores for each category while expanding your business.

Speak with consumers using your customer success team. You should pay attention to what your clients are expressing about your product and any problems they are dealing with it.

You’d be amazed at how easy it is once your consumers figure out what’s bothering them. Any issue that is causing your consumers to leave may be detected and fixed quickly and effectively.