What is a Customer Health Score?
Calculate Customer Health Score in 5 Easy Steps
The Customer Health Score is a flexible metric wherein Customer Success Managers measure in various ways. A low health score indicates a need for more attention to the customer to improve the customer’s experience. The Customer Health Score allows companies to form their own goals in response to the metrics that make the most sense to the business.
But is the Customer Health Score significant?
Evaluating the Customer Health Score provides a data-driven, evidence-based approach to preventing churn and identifying growth opportunities. If the score drops sharply, it is a warning sign that a customer must be reached to save the relationship. When the score is high, the customer is a candidate for referrals and upsells, increasing the company’s revenue.
What are the examples of Customer Health Score?
It is vital to understand that CHS is made up of different metrics influencing the overall score. Using this manner of scoring provides freedom for Customer Success Managers to measure the metrics that matter to the company and helps identify the root cause of low health scores. CHS helps CSMs know the exact next steps to get the customers back on track.