Your customers’ success is critical to your business. But how do you define and measure their success? Should you look at the number of support tickets, rate of adoption, revenue per customer, churn rate, net promoter score, or customer lifetime value? Instead of looking at specific metrics, you need to take a holistic view of the customer using a Customer Health value. Health definitions should incorporate several KPIs and variables, such as business outcomes, lifecycle stage, product usage, license utilization, support tickets and other relevant information. In these slides presented during our webinar, you'll learn how to build an effective health model to measure real business outcomes, drive retention and increase revenue. Presented by Jill Rubin, CMO of Totango, and Isabelle Rochon, Director of Customer Success from iPerceptions, a Totango customer.

1. How to Build an Effective
Customer Health Model
Part 1

2. Part 2
Measuring the Effectiveness of a
Customer Health Model
10am Pacific / 1pm Eastern
Register @ http://bit.ly/totango-health

3. Today’s
Speakers
Jill Rubin
Chief Marketing Officer
Totango
Isabelle Rochon
Customer Success Director
iPerceptions

4. What is a customer health model?
A customer health model is a framework to identify the
status of your customers – are they in good, average, or
poor health – in order to determine who needs attention,
why and the proper course of action. It is comprised of
health scores and health profiles.

5. Best practices for a health score
• It combines several KPIs, metrics, and other data sources into one
comprehensive metric to help you understand the overall health
• It takes the complexity of your customer base and represents it in
simplified manner
• It should be credible
• It needs be actionable and indicate the reasons for the change in health
• It should be automated and reflect customers’ real-time health status

6. A good
health score
definition is:
Simple to
understand
Accurate &
Predictive
Actionable
Rule #1

7. PRODUCT ENGAGEMENT
Are users logging in and using the application in the
way to maximize the benefits?
SERVICE UTILIZATION
Is the customer fully utilizing their subscription?
CUSTOMER SATISFACTION
What is the feedback from customers and CSMs?
SUPPORT & OPERATIONS
Are there outstanding support, SLA and/or invoicing
issues?
1.
2.
3.
4.
5.
PRIMARY INDICATORS: BUSINESS OUTCOMES
Is the customer getting the end result they expected
when they purchased your product?
SECONDARY INDICATORS:
• Application based
• Leading
• Objective
• Full customer coverage
• Lagging
• Subjective
• Partial customer coverage
What impacts customer health?

8. Health Score in Totango
Green – Continue to drive value
Yellow – Monitor areas of concern
Red – Urgency is high – need to engage!

9. Create different health profiles for
your different customer segments
Rule #2

10. Best practices for a health profile
• Segment customers based on particular characteristics with
different behavior
• Types of accounts
• Different products
• Lifecycle stage
• Each segment should have its own health definition and score
• Each customer should qualify for only one segment at a time
• Enables you to roll up the health of all accounts into one health
score for the entire portfolio

11. Customer
Health
Console:
A comprehensive
view of all accounts

12. Example – Marketing Automation Vendor
Health Definitions Onboarding Established
Business Outcomes Launch first campaign - Ongoing increase of leads
- Good open rates
Product Usage/
Engagement
Instance configured
Email templates created
Email feature
Reporting feature
Service Utilization - Size of database / contract
# Seats / contract
Customer Satisfaction Mid or Post onboarding
survey
Annual NPS
CSM sentiment
Operations: Support,
Finance, etc
- No high-priority tickets
No payment delinquencies
Health
Metrics
Health Profiles

13. Benefits of a Customer Health Model
• Gives an understanding of change in health status
• Helps forecast churn, likely renewals and potential upsells
• Communicates status clearly with the organization
• Holds CSMs accountable for their portfolio
• Drives a clear path to action

14. ENGAGEMENT
HOW YOU ENGAGE MATTERS.

15. iPerceptions
Who we are and what we do
• Voice of Customer (VoC) SaaS company
• 100 enterprise clients
• 6 CSMs and 5 implementation specialists
• Platform and consulting services (analytics, integration,
custom implementation, etc.)
• Multi-level accounts: Licenses at the parent level and
projects at the child level

16. Our First Approach
The data we looked at
We tried to identify churn factors by looking at historical data,
such as:
• Financial (size of deal)
• Upsell within the first year
• Survey responses collected (what we call Collections)
• Self-serve vs. Fully-serviced project
• How long have they been clients
• Customer satisfaction score

17. Our First Approach
The health metrics we included
METRIC WHY (our assumptions)
Contract Size Indicated complexity of the account & time
involved for onboarding teams
Survey response
collection size
Low collection (too small of a sample size)
makes it difficult to get good insights
Usage frequency Frequency of logging in indicated platform
usage
Did they upsell within
the first year?
It was the only common data point that
correlated to renewal

18. Our First Approach
Creating different health profiles
We created 20 different health profiles for our 100 enterprise
clients based on a variety of criteria:
• Engagement/usage
• Survey responses collected
• Fully-managed vs. Self-serve
• Depth of integration
• Reporting
• Types of services

19. Our First Approach
Evaluating the health model
We took a 2-step approach to validate our health model:
1. We monitored customer health for a few weeks to see if the health
scores made sense
2. We asked the CSM, Management and Sales to qualify each client as
Healthy, Neutral or Unhappy to compare how their perceptions
matched Totango’s health results.
It didn’t…. Not even close, but why? Accurate
Simple
Actionable

20. How do we fix health?
Improvements to our model
I asked for help! Our Totango CSM made some recommendations.
We found that we needed to improve the following:
1. Make sure the right health metrics were included to make health
more accurate and predictive (example, include onboarding time)
2. Simplify our health profile segments (we over segmented)
3. Start with a basic health score to make it actionable
4. Ditch our preconcieved notions of what healthy was
5. Stop manipulating the data to say what we wanted it to say

21. Our New Approach
Health metrics & profiles redefined
METRIC WHY
Onboarding time If delayed to launch, it affected program
performance/reporting and client satisfaction
Survey response
collection size
Low collection makes it difficult to get good
insights
Platform usage Usage of specific modules
- Analyze (full service)
- Project set up (self serve)
Did they upsell within
the first year?
It was the only common data point that
correlated to renewal
Integration depth The deeper the integration with other tools,
the stickier we are
Three big changes!
#1
new
new
new

22. Our New Approach
Health metrics & profiles redefined
We reduced our customer health profiles from 20
down to 3
We use Totango’s Enterprise Health to calculate
and monitor the health of accounts at the parent
level, not just at individual projects (the child level).
Now account managers know the status of each
account without having to look into their individual
projects.
Three big changes!
#2
#3

23. Our New Approach
Viewing Health in Totango

24. Our New Approach
Evaluating the new health model
Our new 3-step approach to validating our customer health
model:
1. We review our client health profile monthly
2. We analyze the clients that fall into the default category – it tells us
what we’ve missed
3. When a client churns or we have a difficult renewal, we review
their health profile and metrics to see if we missed any other
churn indicator

25. What We Learned From
Customer Health
• It allowed us to identify our strengths and weaknesses as a
company
• Increased the upsell of new business and overall client
satisfaction
• Helped us identify other factors that could impact customer
health:
• QBR
• In-person visits
• Frequency of engagement
• Relationship with the CSM and SAM
• Account transfer

26. Key Takeaways
• Keep it simple
• Identify your churn indicators and use Totango to flag
any potential issues
• Continuously optimize – your client’s needs change
• Make client health and renewal a company wide goal.
Retention is a team effort!

27. Questions?
www.totango.com
@totango
hi@totango.com
Jill Rubin
Chief Marketing Officer
Isabelle Rochon
Director of Customer Success
www.iperceptions.com
@iperceptions
isabelle.rochon@iperceptions.com

28. Part 2
Measuring the Effectiveness of a
Customer Health Model
10am Pacific / 1pm Eastern
Register @ http://bit.ly/totango-health