Customer experience professionals use a variety of scores to get deeper insights into customers and product use.
Here are few methodologies to deduce these scores.
Data collected from different sources can as well be categorized in certain ways based on quality of inputs, lagging & leading metrics.
Presented here are references in these areas. You can look into given articles to dig deeper into the subject.
There are various ways to calculate and parameters to include in deriving at customer health score.
Scoring scheme primarily depends on the nature of the product, company, business model and the industry.
Two main methodologies in practice are
1. Health scoring by parameter weights
2. Formula based health score
Example calculations in both these methods are outlined here:
Twig playbook for Health Score calculation
A quantitative metric to describe how your product is performing. It is composed of primarily three items
1. Product adoption by customers,
2. User stickiness (returning users) and
3. Usage growth
Data gathered through application logs, segment, mixpanel or other tools.
Metrics used to measure past performance, revenue and customer activity.
Churn, ARR, GRR, NDR, and other metrics that are measure a past occurrence, event and reported.
Just recognize that they are inherently lagging to assess current state of business, customer.
These are metrics used as a predictive measure of future performance, customer behavior.
It involves defining activities that need to be done to achieve a business goal and a bit of effort to quantify, arrive at these indicators.
For example, leading indicators of both customer churn and revenue expansion can be centered around user adoption.
When customers start using the product to accomplish their goals, increased adoption offers predictive insight into the health of your accounts.
Another example in customer experience side,
Analyzing NPS, CSAT surveys to arrive at customer sentiment and predict likelihood to account expansion, renewal.
A good practice is to use a combination of leading and lagging indicators.
Looking at leading indicators on an ongoing basis and making changes to help improve achieve your set goals.
Using leading indicators that complement your lagging indicators and help you measure progress more quickly.
Further reading & references:
1. The 15 Customer Success Metrics That Actually Matter
2. 4 Customer Success KPIs every High Touch SaaS Company should Track
3. Top-five-metrics-track-your-customer-success-dashboard
4. customer-success-metrics/
5. ultimate-guide-customer-feedback/
