When creating a customer health score it can be a bit overwhelming to know where to begin. So, here are a few examples to help guide you with getting started creating yours.

You can design a customer health score that indicates upsell opportunities or one that alerts you to accounts that are at risk for churn. You can also do both. However, to avoid confusion most companies use a Health Score as an indicator of churn risk.

You can also design a customer health score that lets the CSM know they need to take action, and you do this by including in it factors the CSM can affect or take action on. We will go into them in more detail below.

What do you want your health score to do for you?

Before designing a customer health score, you need to decide the purpose of your health score, do you want it to be a:

If you decide to design a health score that is reliable and predictable for future revenues/churn, then things like “industry” or “contract size” or “time they’ve been a customer” may turn out to be important factors to make it reliable and accurate. However, none of these factors are particularly actionable - it’s hard for your CSM team to affect them.

Here is a simple example of what types of factors you can use and how you can set them up in Planhat.

On the other hand, if you decide to design a health score that is actionable for your CSMs, you might see things like “low usage”, "low NPS" or “last contacted” to be important (and actionable) factors.

Read more about how to set up your health score factors here.

Here are some other factors you can consider including in your health score:

Here is what we recommend

  1. Keep it simple. Start with something simple. Most companies/products health score is mainly a function of product usage (In Planhat we have a concept called the customer “beat”) and your relationship with the customer (basically when you were last in touch with them).

  2. Different scales showing churn prediction and up-sale opportunity. Do not include “upsell opportunity” in the same scale as your churn prediction in your health score. It will complicate things. If you want to assess the likelihood of upsales, then create another, separate, health score for upsell opportunities - do not try to show them both in the same scale.

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