The customer’s Net Promoter Score (NPS) was in the highest percentile, yet I found myself closing the account. How did we miss this churning customer? Were there early warning signs we’d failed to notice?
I used to work as a technical customer service representative for an environmental testing laboratory. It was my job to keep an eye on the accounts I handled. I needed to make sure the customers were happy and meeting their goals with us. For this, we relied heavily on NPS scoring, but this measure was failing us.
NPS scoring could be failing you, too.
The problem is that NPS metrics give reactive, snapshot values. Plus there are other aspects to an account’s health beyond customer satisfaction. For instance, you need to understand your customer’s goals and whether they’re on track to meeting those goals.
According to McKinsey and Company, perfecting account health scoring can improve client retention by up to 95%. If I knew this, I could have prevented that one account from churning. In this Process Street article, we introduce a more comprehensive and proactive means of determining the health of your accounts: the customer health index (CHI).
- What is a customer health index?
- Why you should transition from NPS to CHI
- How to calculate a customer health index in 4 steps
Let’s jump right to it!