Pulse 2018 was a confluence of the greatest minds in Customer Success, with 5,000+ attendees and representation from 50+ countries. One of the fundamental underpinnings of the conference was the notion that Customer Success is bigger than just establishing a Customer Success management team or organization (CS > CSM). Customer Success is essentially the ability of a company to drive customers’ desired outcomes and drive an exceptional customer experience (CS = CO + CX).

One of the challenges that companies face when striving to deliver this larger notion of Customer Success is putting in place a health scoring mechanism that can proactively identify at-risk customers. While NPS and churn have been widely used to gauge account health, they are lagging indicators that surface customer sentiment only after the fact. In the age of Customer Success, real time health scoring is a must.

Leading firms are now formulating composite health scores that help inform playbooks and related outreach motions. The sessions in the Science of Customer Success track at Pulse 2018 helped break down this multi-dimensional problem by citing individual metrics that can meaningfully contribute to a composite score. Below I have consolidated the various metrics presented into a concise, effective health scoring framework centered on measuring the desired customer outcomes and the customer experience.

Looking past these elements, the next step is to determine whether the account is healthy and is representative of a low-risk customer. The typical guidance is to measure the metrics independently and at a consistent cadence so that they can be measured against industry benchmarks and also relative to prior performance. Once this practice is in place, there must be prescriptive actions associated with lower-than-desired scores. For instance, if adoption and product engagement are lower than industry benchmarks, one prescriptive action could be improving the training provided during onboarding. There should be clear and prescriptive playbooks and calls to action (CTAs) that result from the metrics being tracked.

If you would like to discuss composite health scoring in greater detail, please feel free to contact me.

For the printer friendly PDF of the health scoring framework, please click here.

About the Author
Manisha Mishra

Manisha Mishra is a Manager at Waterstone. Manisha brings over 10 years of experience working in technology and strategic advisory, with a focus on product and growth strategy. While at Waterstone, Manisha has managed the definition, development and launch of a content management product for an enterprise company. In addition, Manisha has also worked on SaaS transformation and Customer Success initiatives.