Fighting churn is critical for B2B SaaS companies because increasing retention and achieving negative churn have a huge impact on annual revenue. But many companies aren’t monitoring proactive churn indicators or measuring customer health at all, which is a major missed opportunity for companies who want to cross the chasm into high-growth and net negative churn.
At UserIQ, customer health scores, or Health IQ as we call it, are informed directly by the user intelligence gathered by our Customer Growth Platform™. This combination provides a more thorough drill-down into customer health. It’s not a subjective “red, yellow, green” status, but a comprehensive look into the components of each score and what specifically led to that score.
What is Health IQ?
Health IQ is calculated using user-defined churn indicators that tell the complete story of customer health, allows customer success teams to assess at-risk accounts and help determine where to deploy resources. With the at-a-glance view of the customer health dashboard, customer success teams can visually recognize signs of churn before they happens and proactively chart a course for correction.
What are Churn Indicators?
UserIQ’s customer health dashboard monitors five key variables called “churn indicators” that are used to calculate Health IQ. Monitoring indicators of potential churn is a necessary function of making sure customers become (and remain) successful. Because UserIQ’s indicators are measured by specific data points automatically and are defined by the needs of your organization, they offer a single source of truth for the health of each account. It means there’s little room for subjective or inconsistent statements of customer health.
UserIQ’s churn indicators include login frequency, feature adoption, technical support, financial data, and customer sentiment. Here’s a breakdown of what each of these mean for your Health IQ:
- Login Activity is based on frequency of logins which helps to identify underperforming accounts and determine whether targeted engagement campaigns are needed to boost login frequency. Login activity is a leading indication of potential churn, but companies often have trouble tracking this data, and if they do, they may not be able to relate it back to customer health.
- Feature Adoption is based on the number of unique features that each account is using within the product. This lets product managers and customer success teams know if intervention is necessary to help users to discover core features or adopt new ones and can allow product or customer marketers understand key features to promote.
- Sentiment is tracked through Net Promoter Score (NPS) surveys and takes a pulse on how successful your customer feels using your product. This is a tried and true key performance indicator (KPI) for many customer success teams because it’s an indicator of growth. It’s also an important factor in identifying promoters (or advocates), passives, and detractors and giving you a starting point for relevant engagements targeting each group.
- Technical Support is calculated based on the number of support tickets that are fulfilled and closed by an account or customer. Support needs and requests can have a major impact on customer health, particularly due to severity and time to response. Additionally, if a customer is opening a large number of support tickets, this could indicate that this user may need more help or require additional training before they are at risk for churn.
- Financial Health is measured by a customer’s monthly rate, whether payments are made on time or delayed, and the validity of the account’s credit card. This indicator is often not equally weighted to the others, but knowing that a customer’s credit card is going to expire or that their account is up for renewal lets you be proactive in outreach that could prevent unnecessary churn.
Can Health IQ be Sliced By User Segment?
Customer health scoring should always be subject to segmentation because it’s a necessary means of truly understanding your customers. Segmentation is an invaluable tool for making better data-driven decisions about engagement campaigns targeting, customer journey mapping, and even post-sales marketing spend and strategy.
UserIQ allows for infinite segmentation filters so it’s easy to address customers at scale, find correlations between data points and even evaluate accounts against each other to compare growth. Track up to 20 different user variables to define highly specific customer segments and make data-driven decisions about engagement campaign targeting, customer journey mapping, and even post-sales marketing spend and strategy.
Increase your Health IQ with UserIQ’s Customer Growth Platform™
Health IQ takes the guesswork out of customer health scores. Backed with intelligence only a Customer Growth Platform™ can provide, customer success, product management, and product marketing teams are equipped with data that helps them fully understand every aspect of customer health. This helps you deliver value throughout each stage of the customer journey.
Schedule a demo to see how UserIQ’s Customer Growth Platform™ can increase your Health IQ.