Customer Health Score
How to use this template?
First, decide what you want to accomplish: increase customer loyalty or reduce churn by 15% a year from now.
Then, identify the actions & KPIs you’ll want to track, both positive and negative.
Once you map those actions, you’ll need to set up the scoring system. This means assigning a “weight” to each of the positive and negative actions.
Based on the activity of each customer, you’ll have to define rules. For example, add 10 points if your customer actively scored 9 on the latest NPS survey, remove 15 if they score 6 or less.
For example, in the product area, the health score would be calculated as follows:
customer health score = sum (positive action 1, 2, 3 x associated weights)- sum(negative actions 1,2,3 x associated weight)
Good news/bad news: most Customer Success Platforms (CSP) have native health score embedded into their product (gainsight, vitally, freshsuccess). Therefore you just need to define the rules and let the app calculate it for you. If you don’t have a CSP yet, your best option is to build a spreadsheet with the formula and inject the data from your product analytics system, CRM and other data inputs. Try tracking it every other week.
Lastly, I recommend setting up your scoring system from 0 to 100 and have new customers start at 50. This means that when a customer enters your portfolio, they’re neither in good or bad health. They’re neutral. This will be your job to bring this score up.
This template lists positive & negative actions in 3 key areas: product usage, customer engagement & account insights.
