Customer Health Score Facts and Trends

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

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

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 %

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

Customer Health Score Facts and Trends

Customer Health Score Facts and Trends

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Customer Health Score Facts and Trends