The number one question on every customer success manager mind is: “Is my customer healthy?”. The first step in coming up with a good health score, is determine what the score really mean, or in other words, how would you be interpreting the score:
1) The total level of value derived (ROI) from our solution
2) The probability of renewal
3) The level of activity and engagement
Once you make a decision – stick with it. Since the customer health score is typically a combination of these metrics, choose a few (3-4 metrics is more than enough!), assign weights to each and calculate the score based on an average. Remember, if you designed the customer score to show the total ROI, don’t be surprised if it doesn’t always show you when the customer is in Code Red. We have other ways to determine that, like setting up alerts based on customer data.
It’s important to track multiple aspects of customer success to gain a holistic view of your customer success strategy. Don’t settle for just one or two groups, but instead pick a few metrics from each and start tracking. It’s like I always say: “Something is better than nothing…”.