Customer Health Score (CHS) combines several customer success indices into a single, dynamic score. It reflects the likelihood of customer retention, account expansion opportunities, and the overall satisfaction and engagement level of a customer.
This metric is important for identifying at-risk accounts, prioritising customer success efforts, and forecasting revenue. It's used to tailor engagement strategies, trigger interventions for customers with declining scores, and align post-sales services with customer needs to foster loyalty and upselling opportunities.
Weighted Average of Select Indicators
CHS is calculated using a Weighted Average of Select Indicators that reflect customer satisfaction, engagement, and the likelihood of retention and expansion.
Ensure you have a deep understanding of your customers' needs, challenges, and goals. Consider segmenting by subscription tier or demographics, so you can quickly hone in on problems highlighted by CHS and take targeted actions. Plan a process for 'at-risk' customers and ensure that sales, customer success, and product teams align on their roles in tackling low CHSs.
A common misconception is that CHS is universally standardised. It's not; startups develop their scoring models.