Quantitative Customer Health Metrics for B2B SaaS

  • 19 January 2024
  • 6 replies

Userlevel 5
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What are your top 3-5 metrics for measuring Customer Health?

We don’t use Gainsight CS yet (hopefully down the road). We’re just getting our feet under us in a reorganized/refocused CX org under a new Chief Customer Officer. 

Our historical way of measure customer health relies on a lot of subjective data and qualitative inputs. 

We’re looking to switch to tangible, quantitative metrics that remove subjectivity. 

Customer Health will be one side of the coin, sentiment (NPS) will be the other.

Industry: B2B SaaS

SaaS: app-building platform 

6 replies

Userlevel 4
Badge +3

Hello Danny,

It's a pleasure to e-meet you!

In the Business-to-Business (B2B) landscape, the assessment of customer health metrics is fundamental to understanding the overall satisfaction and engagement of our business clients. Here are my top 4-5 quantitative customer health metrics in B2B:

  1. CES | NPS - These metrics serve as direct measurements, where a low effort score indicates a smoother experience and heightened satisfaction. We approach this by posing questions such as, "How much effort was minimized?"—factoring in metrics like hours saved.
  1. Renewal Rate - This metric, represented as the percentage of customers renewing, ensures that the return on investment (ROI) remains positive.
  1. NRR - Reflecting the overall health of revenue, NRR takes into account upsells, expansions, and retention strategies.
  1. Engagement - Assessing how frequently and across different personas we engage with our clients within a specific timeframe.

These metrics offer valuable insights into customer satisfaction, ROI, loyalty, and the depth of engagement, enabling businesses to proactively address issues and optimize growth strategies.

Gainsight CS provides an array of features, including Surveys, JO, C360, Renewal Forecast, CSQL, and an impactful methodology called the DEAR framework. These tools promise a significant turnaround in achieving and maintaining customer satisfaction and engagement.

Userlevel 7
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Impossible to have this conversation without talking about the “DEAR Framework” that’s served us well at Gainsight for years ‘n years! This article from our SVP of CX is 👨‍🍳👌


Userlevel 5
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@seth thanks so much! I’m excited to dive into that article.

Stumbled upon the DEAR framework in this webinar reporting I found via search. It’s already been quite helpful. 

I also got a few insights from this post:

My takeaways: 

  • 4-6 factors in the score at the outset
  • only 1-2 include subjective

The way we’re looking at it, our 4-6 might be

  • 2 support-related metrics
  • 2 usage/product related metrics
  • 2 engagement metrics
Userlevel 7
Badge +6

I think that would be plenty. You need just enough to make it more valuable to CSMs than the standalone stats are. (A score based ONLY on # support tickets is a bore.) But the primary value of your first health score is to give the CSMs something to react to, to teach you what should change for your v2 health score. 😄

Userlevel 5
Badge +4

@seth thanks for the advice and insight! That makes sense! 

Any other thoughts for if this metric’s primary audience is our Chief Customer Officer, Senior Leadership Team, and Board? 

CSMs will use it too, but we’re looking for an aggregate indicator of customer health trends, that we can also look at by customer. And then investigate/address the underlying factors and related operational metrics we monitor. 

Userlevel 7
Badge +6

Totally valid question for most questions in CS Ops, including basically any other type of reporting! In my mind, though, if the CSMs don’t find it useful, that means that they don’t think it reflects reality. And all it takes to find yourself rebuilding your health score is one conversation between a CCO and a CSM where the CSM says, “Oh no, don’t worry about that Red customer. The health scores don’t mean anything.” So, CSMs are your best partners to pressure-test it.

It’s been a while since I’ve done it personally, though. I wonder if I’m oversimplifying 😄