Here are the results of our recently concluded survey about Customer Health Scores. This study aims to assess the validity of common industry assumptions about Customer Health Score and to help you understand the significant industry trends in developing, maintaining, and analyzing the Customer Health Score. You can visit our blog to read the takeaways from the survey and download the Infographics: https://www.csmpractice.com/customer-health-score Download the infographic now and share it with your team! If you want to know the expert’s take on these new findings, watch this video to learn from the CSM Practice Advisory Board members as they share their experience and tips on managing Customer Health Scores. Watch the video now: https://youtu.be/UbiBdMlAA7I Learn more about CSM Practice: https://www.csmpractice.com/

1. Customer
Health Score
Facts & Trends
CSM Practice © 2021
IRIT EIZIPS
CCO, CSM PRACTICE
www.csmpractice.com

2. IRIT EIZIPS
Chief Customer Officer & CEO
ABOUT THE SPEAKER
• Voted Top 100 Most Inspirational Global Leaders in 2021
• Voted Top 50 Most Influential Customer Success Thought
Leaders in 2021
• Voted Global CX Thought Leader in 2020
• Voted Top 100 Customer Success Strategists since 2013
• Recognized as one of the Top Global Customer
Experience Thought Leader and Influencers of 2020.

3. World’s 1st Customer Success Strategy Consulting Firm
www.csmpractice.com

4. DISCUSSION
OUTLINE
Who Is Using a Customer Health Score?
The True Impact of the Customer Health Score
Customer Health Score - Current Trends
#CustomerSuccess @CSMpractice @IritEizips

5. Who is using a
Customer Health
Score?
CSM Practice © 2021

6. Customer Health Score
is more common by
31%
in companies that have
a large
customer success team
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

7. Customer Health Score
is more common by
7%
in companies that
have more than
100 customers
Source: CSM Practice Customer Health Score Survey 2021
CUSTOMER HEALTH SCORE SURVEY

8. Customer Health Score
is more common by
30%
in SaaS
vs. On-Premise or
Services organizations
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

9. Companies where CSMs
manage less than
60
accounts are more likely
to develop and maintain
a customer health score
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

10. A Customer Health Score is
more
prevalent
in companies with a more
frequent client-CSM touch
point cadence
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

11. WHO IS USING A CUSTOMER
HEALTH SCORE?
Customer Health Scores is more prevalent
across companies with
Larger Customer Success teams
Larger customer base (over 100 customers)
A low CSM to customer ratio
A high touch customer engagement model
SaaS companies

12. The True Impact
of Customer
Health Score
CSM Practice © 2021

13. Teams maintaining a
Customer Health Score
are more
matured &
scalable
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

14. No clear
connection
was found between upsell/
Add-on sales and the use of
health score
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
% of Revenue From Upsells/Add-on Sales

15. No clear connection
was found between churn rate and
the use of customer health score

16. Customer Health Score
more predominant in
companies with
5%
Churn rate or lower
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

17. In 2020, Companies using
health score noted better
control over their churn
rate
Churn Rate
Trends
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
Gross Churn Rate Trends in 2020

18. Lowest
Churn Rate
is obtained by using
Customer Success Software
or a CRM application,
regardless of a customer
health score
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
% Annual Gross Churn Rate

19. 46%
maintain a Customer
Health Score to forecast
churn / renewals.
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

20. When a Customer Health
Score is being used, highest
Renewal
Forecast
accuracy is reached by using
a Customer Success Software
or a CRM Application
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
Renewal Forecast Accuracy %

22. Customer
Health Score:
Current Trends
CSM Practice © 2021

23. 48%
update their Customer Health
Score algorithm once a year
Source: CSM Practice Customer Health Score Survey 2021

24. Usage, Engagement
and Relationship
are the most used
components
in the calculation of a
Customer Health Score
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

25. Usage and Customer
Engagement are
2x
more likely to be used in
assessing a customer's
health than ROI and use of
resources
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

26. 30%
update their Customer
Health Score on a
monthly basis.
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

27. 79%
Track their Customer
Health Score using
a CS software or CRM
application
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021

28. CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
•
33%
update their Customer
Health Score manually

29. • Usage, Engagement and Relationship are the top components used by most companies in
their Customer Health Score calculation.
• 79% use a dedicated Customer Success Software or a CRM application to maintain their
customer health score
• 33% update their Customer Health Score manually, 29% automatically
• 58% update their Customer Health Score frequently (daily to monthly)
• 48% update the health score algorithm once a year
• 46% use the Customer Health Score to forecast churn / renewals.
MAINTAINING A CUSTOMER HEALTH SCORE
CUSTOMER HEALTH SCORE SURVEY

30. 3
2
Bonus Resources
BLOG INFOGRAPHIC VIDEO
Blog: Customer Health Score
Industry Trends
Visit: www.csmpractice.com/blog/ Download the Infographic:
Full Survey Results
1
Watch CSM Practice Advisory Board
members discuss the survey results on
our YouTube Channel.

31. CSM Practice accelerates profitable growth for
software and services companies by designing
and implementing customer retention and
expansion selling methodologies.
● The 1st
Customer Success Strategy
Consulting Firm in the World.
● Over 100 Customer Success programs
optimized since 2014.
● We specialize in customer health scores
redesign and building out related
playbooks and dashboards!
About the Company

32. is here to help!
CSM Practice is the first customer success strategy
consulting firm in the world. We help technology and
services organizations reduce churn, improve
expansion selling and increase advocacy.
Need help to develop optimal customer
health score calculation, related
playbooks and dashboards?
LET’S TALK

33. Thank you!
Irit Eizips
Customer Success Strategy Consulting Services
Tel: 408-663-6267
Email: irit@CSMpractice.com