Health scores help you take a broad look at the overall state of customer engagement and identify trends that may require more targeted attention. Think of it like your doctor taking vital signs during a physical – each new set of data adds a layer to your view, helping you find recurring patterns and spot potential issues.
One way to approach health scoring is to choose a few key predictive signals, then assign values to those signals that indicate whether they are likely to produce the desired outcome (for example, reduction in product usage might receive a negative value, whereas more positive feedback on a survey would get a positive). As with any system, it’s important to test and iterate the number ranges for these categories.
Once you’ve determined which metrics to measure and how to calculate the resulting customer health score, it’s time to decide what that score means to you and your business. You may want to create a numbered scale that categorizes customers into healthy and unhealthy categories (for example, 75-100), or you might be interested in using percentages.
No matter what you choose to measure and categorize, it’s important that your team can interpret the results in a meaningful way so they can act quickly to prevent churn or improve the health of a segment. This is where a strong partnership with your customer success team will be helpful – they can provide valuable input into what signals are most relevant to your company and help you establish clear categories that signal an issue (such as Red, At Risk). They can also help spot brand champions and unlock opportunities for upsells and cross-sells. health scores