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Customer
Health Score
Facts & Trends
CSM Practice © 2021
IRIT EIZIPS
CCO, CSM PRACTICE
www.csmpractice.com
IRIT EIZIPS
Chief Customer Officer & CEO
ABOUT THE SPEAKER
• Voted Top 100 Most Inspirational Global Leaders in 2021
• Voted...
World’s 1st Customer Success Strategy Consulting Firm
www.csmpractice.com
DISCUSSION
OUTLINE
Who Is Using a Customer Health Score?
The True Impact of the Customer Health Score
Customer Health Scor...
Who is using a
Customer Health
Score?
CSM Practice © 2021
Customer Health Score
is more common by
31%
in companies that have
a large
customer success team
CUSTOMER HEALTH SCORE SUR...
Customer Health Score
is more common by
7%
in companies that
have more than
100 customers
Source: CSM Practice Customer He...
Customer Health Score
is more common by
30%
in SaaS
vs. On-Premise or
Services organizations
CUSTOMER HEALTH SCORE SURVEY
...
Companies where CSMs
manage less than
60
accounts are more likely
to develop and maintain
a customer health score
CUSTOMER...
A Customer Health Score is
more
prevalent
in companies with a more
frequent client-CSM touch
point cadence
CUSTOMER HEALTH...
WHO IS USING A CUSTOMER
HEALTH SCORE?
Customer Health Scores is more prevalent
across companies with
Larger Customer Succe...
The True Impact
of Customer
Health Score
CSM Practice © 2021
Teams maintaining a
Customer Health Score
are more
matured &
scalable
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Cu...
No clear
connection
was found between upsell/
Add-on sales and the use of
health score
CUSTOMER HEALTH SCORE SURVEY
Source...
No clear connection
was found between churn rate and
the use of customer health score
Customer Health Score
more predominant in
companies with
5%
Churn rate or lower
CUSTOMER HEALTH SCORE SURVEY
Source: CSM P...
In 2020, Companies using
health score noted better
control over their churn
rate
Churn Rate
Trends
CUSTOMER HEALTH SCORE S...
Lowest
Churn Rate
is obtained by using
Customer Success Software
or a CRM application,
regardless of a customer
health sco...
46%
maintain a Customer
Health Score to forecast
churn / renewals.
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Custo...
When a Customer Health
Score is being used, highest
Renewal
Forecast
accuracy is reached by using
a Customer Success Softw...
Customer
Health Score:
Current Trends
CSM Practice © 2021
48%
update their Customer Health
Score algorithm once a year
Source: CSM Practice Customer Health Score Survey 2021
Usage, Engagement
and Relationship
are the most used
components
in the calculation of a
Customer Health Score
CUSTOMER HEA...
Usage and Customer
Engagement are
2x
more likely to be used in
assessing a customer's
health than ROI and use of
resources...
30%
update their Customer
Health Score on a
monthly basis.
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Heal...
79%
Track their Customer
Health Score using
a CS software or CRM
application
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Prac...
CUSTOMER HEALTH SCORE SURVEY
Source: CSM Practice Customer Health Score Survey 2021
•
33%
update their Customer
Health Sco...
• Usage, Engagement and Relationship are the top components used by most companies in
their Customer Health Score calculat...
3
2
Bonus Resources
BLOG INFOGRAPHIC VIDEO
Blog: Customer Health Score
Industry Trends
Visit: www.csmpractice.com/blog/ Do...
CSM Practice accelerates profitable growth for
software and services companies by designing
and implementing customer reten...
is here to help!
CSM Practice is the first customer success strategy
consulting firm in the world. We help technology and
se...
Thank you!
Irit Eizips
Customer Success Strategy Consulting Services
Tel: 408-663-6267
Email: irit@CSMpractice.com
Customer Health Score Facts and Trends
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Customer Health Score Facts and Trends

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/

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Customer Health Score Facts and Trends

  1. 1. Customer Health Score Facts & Trends CSM Practice © 2021 IRIT EIZIPS CCO, CSM PRACTICE www.csmpractice.com
  2. 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. 3. World’s 1st Customer Success Strategy Consulting Firm www.csmpractice.com
  4. 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. 5. Who is using a Customer Health Score? CSM Practice © 2021
  6. 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. 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. 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. 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. 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. 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. 12. The True Impact of Customer Health Score CSM Practice © 2021
  13. 13. Teams maintaining a Customer Health Score are more matured & scalable CUSTOMER HEALTH SCORE SURVEY Source: CSM Practice Customer Health Score Survey 2021
  14. 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. 15. No clear connection was found between churn rate and the use of customer health score
  16. 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. 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. 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. 19. 46% maintain a Customer Health Score to forecast churn / renewals. CUSTOMER HEALTH SCORE SURVEY Source: CSM Practice Customer Health Score Survey 2021
  20. 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 %
  21. 21. Customer Health Score: Current Trends CSM Practice © 2021
  22. 22. 48% update their Customer Health Score algorithm once a year Source: CSM Practice Customer Health Score Survey 2021
  23. 23. 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
  24. 24. 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
  25. 25. 30% update their Customer Health Score on a monthly basis. CUSTOMER HEALTH SCORE SURVEY Source: CSM Practice Customer Health Score Survey 2021
  26. 26. 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
  27. 27. CUSTOMER HEALTH SCORE SURVEY Source: CSM Practice Customer Health Score Survey 2021 • 33% update their Customer Health Score manually
  28. 28. • 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
  29. 29. 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.
  30. 30. 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
  31. 31. 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
  32. 32. Thank you! Irit Eizips Customer Success Strategy Consulting Services Tel: 408-663-6267 Email: irit@CSMpractice.com

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