All About Customer Health Score - And Why It's So Important

This article was written in collaboration with Tperson, a boutique full-stack data intelligence agency with a mission to embed data into every company's DNA, enabling them to achieve their full potential through informed decision-making. With extensive international experience, Tperson specializes in implementing end-to-end BI and analytics solutions, ensuring your data is organized, accessible, insightful, and useful.

Ensuring your customers are happy is crucial to the overall health of your business - satisfied customers are one of the most powerful marketing tools in your company’s arsenal.

The Customer Health Score allows SaaS companies to understand the health of their relationship with their customers while identifying opportunities & risks. This score can offer several insights, including:

• If customers are satisfied
• If customers are at risk of churning
• Identifying upsell & cross-sell opportunities
• How customers are using your products & services

These signals are often used by customer success & product teams to determine the likelihood of a customer increasing their investment in your company, renewing on a flat basis, or churning. This score also helps both product & customer success teams to more efficiently manage resources, ensuring the right amount of effort & energy is allocated to the right places before problems escalate.

Determining how to score

The scoring system differs from company to company.

Common health score parameters include:

Product usage 

This measures the usage of the product & its features, focusing on three main factors:
Frequency: How much time do users spend in the product & how often do they use it?
Breadth: How many registered users actually use the product? 
Depth: Which of the product features are being used?
These help identify possible issues within the product & indicate where resources should be allocated for improvement.

Product value
This measures how well your product delivers what your customers need, compared to alternative products or not using a product at all. Ideally, this is measured in terms of ROI, but it’s also possible to estimate if your product is a “must” or a “nice to have”.

Product satisfaction

This measures how satisfied customers are with the product itself. NPS (Net Promoter Score) is one indication of product satisfaction that measures the loyalty of a customer to a company. 

Customer overall satisfaction

This measures the overall satisfaction of a customer. For example, while product satisfaction might be high, customers could be frustrated with the customer support they receive. 

Relationship with the customer

By measuring the frequency of customer communications, the types of personas who are doing the communication, the tone of the interactions, & more, a company can identify both opportunities as well as customers at risk of churn. 

Financial health

This measures the overall financial health of your customer's relationship with your company, & can include upgrades, downgrades, add-ons, & more.

A customer health score can also be used to establish goals for each of the different measurements, focusing on necessary resources if one of the metrics lags behind the others.

Create a Customer Health Core System for your company

If you’d like to learn more about how to create a customer health score system for your company, Tperson is here to help! You can get in touch here. 

At ScaleOps, we leverage the Customer Health Score to empower our customer success teams to utilize data effectively in their daily operations. By identifying and reaching out to customers with low scores, we can nurture these relationships and prevent potential churn. For our promoters, we encourage them to share their positive experiences through reviews, enhancing our brand’s reputation.

Collaborating with Tperson to create and analyze the Customer Health Score, alongside ScaleOps' expertise in implementation, can enhance your company's customer success efforts. This partnership ensures that the insights derived from the health score are seamlessly integrated into daily operations, driving better customer engagement and overall business success.