How to calculate customer health score?

Scoring customer health is really critical to the long-term success of the present Customer Success team. It is a way to determine what you have been doing for so many years by just coding your customers under three colours, red, yellow and green. This model is amazing but it has some of its limitations as well.

First of all, you have to update the scorecard manually. Moreover, the criteria need to be quite subjective. With the growth of the company, there are multiple “un-scored customers” you might come across. Moreover, if you failed to dig closely, it becomes hard to tell which colour code should represent a customer well. But, even with some limitations, following this colour coding method for determining customer health score has helped out a lot of companies in their growing period.

Understanding what customer health is:

Before you start anything, it is vital to know what actually account health stands for. In case the score of a customer is 48 out of 100, or Red or C, you need to know what it stands for. First of all, make sure to ask some questions to yourself to understand account health well.

  • You should know if the score is a predictor of churn or renewal.
  • How quickly do you think if might fluctuate? Will it call for not just the value you are offering them but also the value they are providing as well?
  • What elements do you think can make up for the entire score? Should any element among the lot need to be subjective or are they all concrete and objective?
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While running down the procedure, there are multiple questions you will come up with. So, the process can be a bit time consuming, but quite healthy to say the least. You get the chance to ponder multiple aspects of the health of your customer and then formulate some major thoughts around it. Remember to note down the number of people involved in this scorecard.

Some health inputs to consider:

Before you head toward SaaS Customer Health Score, there are certain inputs you might want to keep in check for determining the customer health.

  • First of all, it has to be the complete use of your product.
  • Then you must point out the use of maximum features associated with your item.
  • Later, you have to calculate the depth of use or the percentage of the item used.
  • Check out the breadth of use or the numbers of licenses considered.
  • Make sure to check the growth of the customer’s account and the length of time as a customer.
  • Keep some thoughts in mind regarding the discount level, a number of renewals, and the number of completed upsells.
  • Keep a track of the percentage of spending, which seems to be non-recurring, along with the survey results and how often the customers are calling for support.
  • Later, you need to check-in for marketing participation like case studies, speaking engagements and references.
  • Don’t forget to keep a track on the community involvement, product feedback, history of the invoice, length of time between first renewal and onboarding end.
  • Keep a score of the executive and overall relationships.
  • If you have any C-level users, make sure to mark those names as well.
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The use of e-book:

If you are trying to get hold of SaaS Customer Health Score for the first time and don’t know how to approach the scenario, taking the help of quality e-book might work wonderfully. Customer health Score is always the primary call for the majority of people, willing to drive customer success. To get some tips and advice on separate materials associated with health score, catching up with e-book will help.

  • The guide will present you with step by step method, for implementing the points for your firm.
  • It does not expect you to cover all the points but will mention the points, which are worth tracking. It will also tell you how to do it efficiently.
  • The e-book will further show you how you can grow the score with time, as your company expands.

Each organization has its own specified needs when the main point is calculating customer health score. It is hard to find one particular way, which will fit all of them. The E-book will show you ways to configure the points as per your needs to scale the success ladder.


Rose is a technology enthusiast and a writer. She had the interest to write articles related to technology, software, Mobiles, Gadgets and many more.

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