Assessing And Managing Customer Health

Question 1

What makes a healthy customer?

Answer 1

A healthy customer is a customer who is on track to achieve their desired business outcomes.

Question 2

What are examples of leading indicators for healthy customers?

Answer 2

1) Number of times logging into the platform
2) Use of main features
3) Sending positive NPS scores

Be aware that it doesn’t cover the whole picture.

Question 3

How can you show/list a customers health?

Answer 3

Either by:

1) Numeric representation (score x out of 100)
2) Traffic light representation (green / yellow / red)
3) A hybrid of 1 and 2 where numbers drive colours

Question 4

How can you develop an accurate Health Score?

Answer 4

Assess what success looks like for each customer (Success Plan should reflect this)

How is each customer performing moments of truth powered by metrics and data points.

Question 5

Name three (broad) types of inputs that can be fed into a health score

Answer 5

1) Outcome Health (tracking against desired business outcomes)
2) Business Health (how strong is the customer’s business)
3) Relationship Health (how engaged is the customer with your company)

Question 6

Name the four golden rules for Customer Health Scores to be successful?

Answer 6

1) Be inclusive (it needs to work for all customers, or one segment)
2) Be timely (its a real-time pulse)
3) Be contextual (it needs to incorporate and recognise custom differences)
4) Be actionable (you can take action)

Question 7

Name the top 5 common health score mistakes

Answer 7

1) Using a generic definition of success for all customers
2) Tracking lagging not leading indicators
3) Focus on what’s easy to measure rather than what should be measured
4) Too much time spent on tuning the model constantly
5) Lack of systematic playbooks to drive proactive corrective actions

Question 8

How to construct a health score within your business?

Answer 8

1) Brainstorm a list of your most common customer outcomes (pains/benefits)
2) Develop a way to capture which outcomes are most important for which customers (could be by segment or market)
3) For each customer, identify leading and lagging indicators
4) Rank the weight/importance of each indicator
5) For each leading indicator, build a playbook

Question 9

How often should you validate your Health Score model?

Answer 9

Periodically - not continuously. Start small and only add metrics that you are absolutely sure is solid.
Review model every 6 months or so, but calculate the Health Score every month maybe week.