The biggest challenge most businesses face in today's market is maintaining and building customer relationships. It can be difficult to gauge the successes and failures of most customer relationships and respond appropriately if there isn't a solid system to inform strategies. This is especially true if you need to fix a relationship before it's too late.
Even though most customers will complain about your brand to anyone who will listen to them, only about 1 in 25 actually interact with brands directly. With a customer health score, not only can you catch dissatisfaction before the relationship is ruined, but you can also find potential growth opportunities.
Here is why you should consider taking advantage as soon as possible.
What Is a Customer Health Score
A customer health score is an easily digestible score that highlights risks, gauges satisfaction, and can flag accounts that need attention. Account management software can also measure opportunities with your customers, including the likelihood of upselling products or services, renewing, churning, or even keeping consistent.
The ability to track your accounts allows you to make sure nothing falls through the cracks. For instance, whether an account is healthy or at risk for dropping off.
This insight can drive your next move in the relationship — whether that be recommending a bigger package, additional products, or providing immediate attention because they're high risk of leaving.
For measuring a customer health score, you'll need your customer health software solution to consider:
- How long a customer has been with you.
- Who the key decision-maker is.
- Prioritizing larger users and orders (they impact the bottom line more substantially) — also drops in orders can signal trouble for the future.
- Monitor support requests and indirect feedback to address problems more efficiently.
Check out the in-depth guide on how the key account management process feeds into the KAM software.
Benefits of a Customer Health Score
The three most important benefits of tracking and monitoring customer health scores are the insight you obtain into your audience, the knowledge of what is and isn't working to inform future decisions, and the identification of opportunities you can take advantage of that will contribute to the growth of your company.
Customer insight
Provide a holistic look at your clients to make sure things are running smoothly at every turn. As your business grows and your clientele grows with it, it's typically challenging to nourish each relationship appropriately. With a customer health score, you can easily identify where you're at in each relationship — i.e., customer satisfaction, buyer preferences, changes in behavior, years together, etc.
Know what is and isn't working
Another important benefit of accessing a customer health score is having the ability to evaluate what is and isn't working so you can make immediate improvements before a problem can arise. More often than not, customer/brand relationships fail because the brand wasn't aware that its tactics or messaging were not resonating well with the client.
Identify growth opportunities
There's nothing more wasteful than missing out on the opportunity to fill in gaps and address additional needs your client may have. Not only can you benefit from a boost in sales when you offer relevant upsells to a client, but you also strengthen the relationship they have with your company because they can trust that you can both identify and resolve many of their problems.
How to Use a Customer Health Score to Identify Growth Opportunities
There are at least four ways to use customer health scores to take advantage of growth opportunities.
Monitoring risks allows you to make improvements
By having risks noted as part of the health score, you can see areas you need to improve upon. Even better, you can improve upon those areas as soon as they're reported to avoid negative customer responses.
Although it is often easier said than done, you must be able to address customer problems and resolve them either before they realize how dissatisfied they are or at least before they walk away and spread the word about their experience.
Identify ideal customers
The more insight you have into your existing customers the better prepared you will be in identifying your ideal customers. After all, there's no better place to look than the customers you have right now.
Through the many trial and errors experienced in consumer and brand relationships, you will continuously get more informed on your audience and how you can reach a larger portion of that segment.
Identify accounts you need to up-sell, down-sell, or cross-sell
Customers want to know that you have their best interests in mind while doing business. This includes knowing when they could use additional products or advanced services to resolve their problems just as much as it means down-selling to a more appropriate deal that best suits their finances and needs.
According to Sumo, the top contributors to company growth are upselling and cross-selling. Not only can they increase revenue by 10-30% on average, but 70-95% of revenue is made up of upsells and renewals among companies who offer them. Their report also adds that upselling existing customers are 68% more affordable than obtaining a new client.
Allow customer service to be more strategic
Considering how saturated nearly every market is with similar products and services, customer service is where brands can really make a name for themselves and stand out. You can use customer health score data to be more strategic when interacting with customers and fulfilling their needs.
In fact, Salesforce reports that 91% of customers say good service makes them more likely to purchase from a company again, with 80% saying that their experience with your company is as important as the product/service itself.
Deliver More Value with Kapta
Customer experience and satisfaction are the biggest contributors to growth opportunities. When you deliver more value with Kapta's Customer Health Score solution, you put your brand in a better position to address problems before they become irreparable, strengthen relationships with great clients, and increase sales by upselling to clients who are more than happy to hear about what else you can offer them. Contact us for more insight into how we can help you improve customer relationships and contribute to your bottom line.
