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Defining the customer health score

Customer Health Score Overview

Totango attaches a health score to every customer account in your portfolio. It uses a complex set of algorithms and business rules to measure the value delivered to the customer, in order to predict their likelihood to renew their subscription.

 

 

For a health score to be an effective KPI, it needs to take into consideration several data types and sources, combined into one health score for each customer.

The specifics depend on the nature of your application and customer-success programs. We recommend you schedule time with your Totango customer success manager who will survey your application and data to recommend the most effective strategies for modeling health for your organization.  

 

Recommended Health Score Configuration
For most applications, we recommend the following baseline settings. Use the Settings | Health administration page on Totango to change these settings

1. A health profile for every major customer-segment / plan
Profiles let us segment customers into natural groups that behave differently, and create a separate score-card for each.

 Totango also creates a separate profile for Onboarding customers, by default any customer in their first 30-days.

 

2. Health Scorecards 

Each profile should be assigned a score-card to capture the expected behavior of customers in that segment.

We recommend using the 3 built-in product engagement metrics computed by Totango automatically and field proven to have strong correlation to sustained product-usage and churn.

  1. Engagement Score
  2. Usage Frequency
  3. License Utilization (or Active Users if your application does not maintain per-seat licenses)

We also recommend adding 2 custom metrics specific to your business domain, such as in the example below.

Good Health

    • Usage Frequency at least Weekly
    • Engagement >= 60
    • License Utilization >= 50
    • Active Clients >= 3
    • Invoices/Month >= 15


Poor health

    • Usage frequency is inactive
    • Engagement < 10
    • License Utilization < 20
    • Active Clients <= 1
    • Invoices/Month <= 3

For profiles that represent high-touch customers, you may also want to add a Subjective CSM Risk Rating

Not sure which values to use or thresholds to set?
Consult with your Totango Success Manager on best ways to calibrate your health score based on data collected by your Totango.

Customer Health Score Tune up
Totango recommends you periodically tune-up your health score and optimize its settings based on team feedback and ongoing learning about the evolving usage patters on your application. Please contact your Totango Customer Success Manager for assistance. 

Recommended Tune-ups:

  1. 30 days after initial rollout of Totango
  2. After significant product changes

Adding Subjective CSM Risk Rating for High touch environments

For high-touch customers, you may want to incorporate a subjective risk rating by the assigned CSM team member. This will allow the managing CSM to add their impression of the overall health of the account, based on relationship or other factors. For example, if a key stakeholder has left the company, or has given a negative feedback in a recent check-in call, the CSM may raise the account’s risk flag.

To build such a subjective rating, you must first have a place to capture the CSM input. Typically this is done in a Salesfroce Picklist field, with the following possible values:

Value Description
0
NO known risk
1 MINOR RISK. A general decline in attitude or negative feedback.
2 MAJOR RISK. Customer has expressed dissatisfaction. Escalated to Dir/VP level for resolution
3 CRITICAL RISK. Customer has decided, or is nearing a decision to cancel subscription


Make sure the CSM team regularly updates the field and sync that into Totango through an attribute (CSM Risk).
Use the following logic to add it to your scorecard. Remember: You should only use this for high-touch customers where the CSM can practically track this information for most of their accounts.

 

Good Health

  • Engagement > 60
  • License Utilization >= 50
  • Usage Frequency at least Weekly
  • Attribute ‘CSM Risk’ is ‘0 - NO RISK’ or “<empty>”

This will ensure that a customer is in good health only if there are NO risks associated with it. 

Poor health

  • Engagement < 10
  • License Utilization < 20
  • Usage Frequency is inactive
  • Attribute ‘CSM Risk’ is ‘4 - CRITICAL’ or ‘3 - HIGH’
A customer is considered in poor health if there is a HIGH  or CRITICAL issue

 



 

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