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How to calculate customer health score?

No matter how big or small the business is customer health score proves to hold a major point. This metric helps companies predict their customers’ likelihood and see if they are willing to stay with the firm. This metric is important to offer insight into what is going on in customer accounts on a daily basis. 

This metric comprises of customer health scorecard. The main purpose of this card is to indicate the well-being of any account, which remains quantitative ideally. It will offer metrics to gauge the account’s health well. However, it is hard to come across any industrial standard for health scorecard. To define the score, it is vital to isolate 4 to 7 indicators for calculating scores and avoiding making it way too complex.

The importance you cannot deny:

Some of the customer success leaders will insist on the importance of customer health score for the leaders. They must keep a detailed eye on customer account from time to time. The experts can only follow the norms by regularly checking the touchpoints and interactions. On an overall basis, the Customer Success team will focus on multiple parameters for taking advantage of the health score.

The basic points to include:

You can only turn the health scorecard to be meaningful is designed on aspects matching your business needs. There are some significant aspects to it, which you need to be aware of beforehand.

  • The first one got to be flexible. Every business needs to be treated as unique and must define weightage and scores for the total procedure, which best suits them. 
  • Moreover, you need to remember the principle of value residing over vanity. The main key is to check the difference between what looks good and what proves to be more useful. So, for meaningful insights, analyzing data is very important.
  • The time has come to capture some relevant and real-time data now. It is rather a complex procedure in need of proper analytics and tools. Unnecessary data can be quite overwhelming for most. On the other hand, taking data-centric decisions with lower relevancy is proven to be counter-productive in nature. The accuracy and speed of data are quite important to capture too. The actions must take place within the timeframe for proper results.
  • It is better to measure the engagement and what better way to do so than the health scorecard of the customers! If a consumer uses any service or product more, the customer will derive more value from it. An engagement measure seems to be pretty important at this stage. The engagement’s duration and how effortless and smooth it can be will be a major yardstick.

Understanding the duration index:

The frequency and duration of engagement of every possible customer must be captured and measures properly. The engagement quality will help define the score more. After subscribing to an app, for example, how much time the app needs for measuring the final call? The period can be anywhere from a single day, fortnight, week, or even a month.

On average, scape, the statistics will be taken on usage analysis under various periods. The usage span will vary from one session to another. There will also be short span sessions or a few sessions of considerable durable. It can also be some hybrids of the long and short span sessions. For some people, the task remains complex. But, it will need some proper data analytics tools and measures for the best result in the end.

The rating or performance index:

The performance of any service or product needs to be measured thoroughly for calculating the present Customer Health score. This index needs to work on parameters, designed to describe performance for users. Take the same app example for a change. If the function remains the same on desktop or laptop, then the speed in which the page loads remains important for the current user retention. 

Focus on the best health score:

Every business needs to focus on calculating the finest customer health score to advance their business. These scores will help them to realize the changes they need to make while improving their customer base to a whole new level. So, working on these scorecards is really a big deal for business, whether big or small.

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