A customer health store is a tool that allows businesses to track and manage the health of their customer relationships. It typically includes metrics such as customer churn rate, lifetime value, and satisfaction scores, as well as information about the customer’s usage of the company’s products or services.
To develop a customer health store for a SaaS company serving medium to large businesses, you would need to first identify the key metrics that are important to track for your specific customer base. These metrics might include things like product usage, customer satisfaction, and renewal rates.
Next, you would need to gather data on these metrics from various sources, such as customer surveys, product usage data, and sales data. You would then need to analyze this data and create a dashboard or other interface that allows business users to easily track and understand the health of their customer relationships.
You may also want to include features like automated alerts for when a customer’s health score falls below a certain threshold, or the ability to drill down into specific customer data to identify root causes of issues. Additionally, it’s very important to have a clear and defined process of how to use this data to improve the customer experience and drive retention.
It’s also important to consider the user experience and design the customer health store so that it’s easy to use and understand, even for non-technical users.
One example of a practical implementation of a customer health score at a B2B SaaS company is a company that provides project management software to enterprise customers. The company implemented a customer health score that included the following metrics:
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Product usage: This metric tracked how often customers were logging into the software and using it.
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Customer satisfaction: This metric was based on survey data collected from customers on a regular basis.
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Renewal rate: This metric tracked the percentage of customers who renewed their contracts with the company.
The company then created a dashboard that displayed these metrics for each customer, with a color-coded system to indicate the overall health of the customer relationship (green for healthy, yellow for at-risk, and red for churn risk).
The company also set up automated alerts to notify the customer success team when a customer’s health score fell below a certain threshold. The team would then review the customer’s data and reach out to the customer to understand the root cause of the issue and provide assistance to improve their experience.
As a result, the company was able to identify at-risk customers early and take action to improve their experience and reduce churn. The company also saw an increase in the number of customers renewing their contracts and a decrease in customer churn. Additionally, the company was able to identify areas for improvement in their software, by analyzing data from low-performing customers, and was able to implement changes to improve the product for all customers.