We often go for health check-ups as adults, right. As we grow, the number of issues we can face increases and hence we opt for health checks. The same with customers. As the number of customers grow, it can be close to impossible to manage them effectively or maybe even satisfactorily. We may miss important signals the customer behaviour is showing including churn, risk of bad reviews, and more.
As per statistics, close to 90 percent of customers are influenced by reviews while purchasing a product.
This is when you should collate your customer’s health score to make sure they tick and continue to remain with you.
Why is a Customer Health score important?
In the competitive business landscape, to retain customers and create opportunities for new ones, it is necessary to create a strategy and monitor customer health score to ensure less churn and consistent growth. To work out that strategy, it is necessary to know what makes a customer successful. If a customer agrees that he or she is getting the best value off your product, that is a sign of a successful customer. A customer health score is one which will let you know if your customers can contribute to your overall growth.
3 Best Customer Health Score Benchmarks
Once you have understood what values contribute to your success, the next is to look at the metrics that will decide the business. The below are the most important metrics any business can consider when going for a customer health score.
If your customers really find value with your products, they will use them and find value. If they login every day, use the product, and spend time- it means they are actively invested in the product. A customer who logs in every day may not use the product in an effective manner which is where another important point comes into consideration. How long has the customer been invested with the business? The longer, the better for customer retention.
Nature of Support Questions
Every customer has requests about the product that need to be answered. Sometimes, not only the request but also the tone and severity of the request should be kept in mind. Extreme frustration or sadness over purchase can be bad for the business. If the customers are repeatedly asking the same questions, it can be lack of customer education which is a huge reason they churn.
Feedback- Direct or Indirect
Many times, customers do not tell you what they want exactly directly. This is becoming rampant and impacting customer health by impacting NPS ratings, customer reviews on sites, or marketplaces. This is another major reason for customer churn.
Bottom Line: Necessary for Customer Success
Customer health score bases on insights of existing data to make informed decisions. With these metrics, you can track customer health score. Improve on aspects where there is a lacking like communication, trust, or retention. Accurately tracking how customers feel is difficult but using technology to understand what they want and need and simplifying the whole customer journey can improve prospects of mutual growth.