For Web3 brands, customer health scoring is critical to improving engagement, satisfaction, and loyalty. By analyzing key metrics and applying scoring models, brands can assess user health, identify areas for improvement, and drive adoption, upsells, and advocacy. Let's explore the effectiveness of Web3 Customer Health Score questions and how you can use them in your marketing strategy.
A Customer Health Score measures the likelihood that a user will churn or upgrade
What is a Customer Health Score?
A Customer Health Score is a metric to assess a user's overall well-being and satisfaction with a company's products or services. It is a quantitative view of the customer's relationship with the company, reflecting their satisfaction and engagement with the offerings. The score helps brands identify healthy and unhealthy users, enabling proactive measures to retain satisfied users and address potential issues before they lead to churn.
Web3 Customer Health Score metrics
Customer health is typically measured using a combination of marketing, CRM, customer service, and product usage data. Key metrics include:
Customer Health Score is calculated based on factors such as engagement, product usage, and support interactions
Product Usage: Percentage of product adoption and usage to ensure full utilization of features and maximize value.
User Advocacy: Level of user advocacy, indicating brand ambassadors and positive word-of-mouth.
User Engagement: Level of interaction with your company, measuring the depth and breadth of user involvement.
User Relationship: The quality of the bond between your brand and its users, reflecting trust, loyalty, and long-term commitment.
User ROI: Return on investment for each user, assessing the financial impact of user interactions.
Number of renewals: User retention, indicating loyalty and satisfaction.
Number of upsells: Additional purchases that reflect users' willingness to invest in your products or services.
Need for support: Frequency and type of support requests, indicating potential knowledge gaps or autonomy issues.
Billing History: Payment history, indicating on-time payments and budget availability.
Community Involvement: User participation in online forums, reflecting engagement and loyalty.
How to calculate Web3 Customer Health Scores?
To measure customer health, align with your customer success (CS) organization and goals. Invest in tools that provide health signals such as Formo to identify and prioritize opportunities.
There are several steps to calculate a Customer Health Score:
5 Key steps to calculate Customer Health Scores
Define customer health
Determine whether it will alert you to churn, measure loyalty, or serve another purpose. Determine what your score will represent and how it fits into your customer success strategy.
Select predictive metrics
Choose predictive metrics that signal specific actions, such as product usage or marketing engagement. These metrics should provide insight into user behavior and help you identify trends.
Create a scoring system
Create a scoring system that assigns points to user behavior based on desired actions (e.g., multiple site visits) and undesired actions (e.g., negative feedback). This system should summarize the metrics and reflect user perception.
Segment user data
Collect data and test different combinations of metrics to ensure accurate representation. Segment data using ranges of numbers to categorize users as "healthy" or "unhealthy.
Visualize the score
Visualize your Customer Health Score using methods such as dashboards, reports, or alerts to guide the work of your customer success team.
Customer Health Score Scale Examples
A numerical scale isn't the only way to categorize your customer scores; Here are three common methods to indicate good, fair, or poor user health.
Color Code Scale
Use a color code scale to get your team's attention quickly. Categorize using a universally accepted scale of green (good health), yellow (action required), and red (needed urgent attention).
Examples of Color Code Scale I Source: Totango blog
Grading Scale
Use an A-F grading scale to categorize health scores. A is assigned to users with the best health, while F indicates churn risk.
Examples of Grading Scale I Source: HubSpot
Percentage Scale
Use a percentage scale to combine multiple behavioral metrics into an overall score. Each metric is scored individually, so important actions have a greater impact on the final score.
Examples of Percentage Scale I Source: Custify
16 Questions for the Web3 Customer Health Scores
Customize your Customer Success Health Score by selecting questions and metrics that drive long-term relationships. Set benchmarks and targets to track progress. Key questions of traditional and Web3 surveys to consider:
Analyze customer behavior to identify patterns and areas for improvement
How long has the user been with you?
What is your user churn and retention rate?
How many products does the user buy on average?
How often do they buy? What is their purchase frequency?
What is your user's product usage rate?
Has their account with you grown over time?
Are they buying upgrades or increasing renewals?
What is their new business win/loss rate?
How often do users engage with you across channels?
What kind of feedback do you receive? Complaints or compliments? Returns and refusals?
How engaged are they in your community, mentioning you on social media, responding to surveys, making recommendations, etc.?
What is their Net Promoter Score? What is their referral rate?
How satisfied are your users?
How well does your company retain existing users and generate revenue from them over time?
What value do your users bring to your business over time? What is the lifetime value of your users?
What other metrics are specific to your industry?
Improve user engagement and drive growth with Formo
Formo is a cutting-edge Web3 marketing tool that aggregates onchain data from multiple user systems. By integrating Web3 Form Building, Analytics, and CRM, Formo provides a comprehensive view of specific metric groups, overall scores, and trends with actionable insights. Sign up now for early access!
Enhance user experience and drive growth with Formo
Web3 Customer Health Score is a critical metric for organizations that prioritize user satisfaction, loyalty, and success. This metric helps you make data-driven decisions, allocate resources effectively, and monitor continuously to drive growth and gain a competitive advantage.
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