Account managers and customer service teams use customer health scores to monitor their customers and determine how likely they are to complete a specific action or how loyal they’ll remain to a brand. When a score falls below a predetermined threshold, they can reach out to the customer to try and strengthen the relationship.
This glossary covers some of the most common definitions and terms for customer health scores. Understanding what customer health score metrics reveal can help boost retention rates and increase revenue through upsell and cross-sell opportunities.
Customer Health Score
A customer health score helps you identify at-risk customers, including those who are losing interest in or abandoning your brand entirely. Which scoring system you use will vary from what other companies use, but it should be designed to accurately assess the likelihood of a customer staying with or leaving your brand.
Customer Health Scorecard
An index made up of several key performance indicators (KPIs) that gives you an overview of how healthy a customer’s relationship is with your product or service. Some companies use dozens of metrics, but you can build a useful scorecard from just a few crucial KPIs like product setup or adoption, product usage rate, net promoter score, and CSM pulse.
Customer Health Score Metrics
Used to understand whether a customer will increase engagement, stay consistent, or churn. Monitoring customer health score metrics also lets you see why customers churn, including lack of usage, low engagement, software bugs, poor product fit, etc.
SaaS Customer Health Score
Elevating customer success in the SaaS sector can pay big dividends, significantly helping you build out new channels and grow your company. There are four crucial reasons SaaS companies must pay attention to customer health scoring: (1) to identify power users; (2) to identify account expansion opportunities; (3) to identify potential churning customers; and (4) to uncover success and failure patterns.
Customer Health Check
Customer success teams must nurture customer relationships at every stage of the customer journey. Checking in with your customers’ product and service needs, analyzing usage statistics, and proactively addressing problems can ensure customers remain happy and refer your brand to friends and colleagues.
Customer Health Dashboard
A customer health dashboard takes multiple KPIs to produce health scores for individual customers. It makes it easier to keep track of every customer and helps you fine-tune your data analyses down to the smallest details. For SaaS businesses, a good customer health dashboard provides insight into annual recurring revenue (ARR), which features are being used, daily active time, customer pulse, NPS score, support tickets, and more.
Upselling in SaaS means increasing customer lifetime value through subscription add-ons and upgrades. If you offer a freemium version or trial of your product, upgrading free users to paid accounts is also considered upselling.
In SaaS, cross-selling is selling customers additional related products, often at a discount for each additional product. You increase your chances of cross-selling to existing customers when you demonstrate the true value a customer receives from adding on these products.