Our world is quickly moving to a subscription economy. In a subscription economy, the economic value of a customer is realized over time, instead of up-front at the initial sale. This means that the duration of the customer relationship has an increasingly large economic impact on the company’s financial health. Being successful in this new economy requires that companies actively manage their customers during their engagement relationship to ensure that they are realizing the economic value of their purchase. Why? Because if you don't, customers churn.
A new organizational role, called customer success, has emerged which is dedicated to actively managing the post-sale journey that a customer has with a product or service that they have bought. One measure that customer success organizations use to track a customer's success is a "health score." The health score is a composite number created from product usage data (who's using the product, how is the product used), customer interaction data (support tickets, customer feedback) and contractual data. This data is pulled from systems like CRM, ERP, billing, customer survey solutions. It is tracked at a user and company level and the way it trends, and sudden changes to the score are used to understand a customer' health.Read more