Hi, not sure if this question has been asked before, or if anyone is has done this. We have our tactical measures on our scorecard and know want to get more strategic about interpreting the information. Basically do the measures we have on the scorecard really act as a prediction for whether an account will renew or not and to be able to use that dat with some certainty.
So, I would like to look at scorecard trends and map that to when a renewal is due to see if there is any correlation between the account health at that time and the accounts propensity to renew and then look at this across a number of accounts/segments to see what trends we can see. It willalso help us to decide if we need to include other measures.
I'm at a bitof a loss where to start - has anyone done anything similar? Anyhelp would be appreciated!
Page 1 / 1
Depends on your measures. We have accounts that show as Green that end up not renewing, but were very happy, and accounts that are Red that renew every year. I think Health Scores are great for a snapshot in time.
Another way to look at it would be to measure renewal risk and then incorporate that score into the overall Health Score. And then the renewal score is the predictor rather than the overall Health Score. I believe I saw @melissa_allen present something on this.
Another way to look at it would be to measure renewal risk and then incorporate that score into the overall Health Score. And then the renewal score is the predictor rather than the overall Health Score. I believe I saw @melissa_allen present something on this.
You can look at your churned accounts in the past 3 months and use the Account Scorecard History object to look at what the data was showing at that time and a couple of months prior to that. Are your CSMs recording churn reasons in detail (via a survey or in Timeline)? If the churn reason turns out be not something you are tracking, then that is a good place to start.
As Meenal mentioned, you have scorecard history data to go back and see what the health score of the account was at the time of churn - or even better - what the score was at 90 or 120 days out (when you still might have had a chance to address issues).
There are some different schools of thought on what the health score should represent, but as John noted - sometimes green customers churn and red customers renew.
My experience in this keeps coming back to the singular point that if the overall health score does not measure the likelihood of a financial outcome, what good is it? If a customer likes your product and team but doesn't renew, then the health score wasn't terribly useful, right?
Ideally, you should have a health score that is tuned into the factors that influence the relationship between the customer and your company. And to be a bit more specific - the factors that historically have been associated with their likelihood to decide a certain way when they face a decision point (typically a renewal).
If you put the various outcomes on the spectrum, you'd have: Churn of the logo, Downsell (or churn of a division), Renew flat, Renew with uplift (existing license base), Renew with upsell of more licenses
Your health score should give you a birds eye view of what that customer is likely to do from a financial perspective.
There are some different schools of thought on what the health score should represent, but as John noted - sometimes green customers churn and red customers renew.
My experience in this keeps coming back to the singular point that if the overall health score does not measure the likelihood of a financial outcome, what good is it? If a customer likes your product and team but doesn't renew, then the health score wasn't terribly useful, right?
Ideally, you should have a health score that is tuned into the factors that influence the relationship between the customer and your company. And to be a bit more specific - the factors that historically have been associated with their likelihood to decide a certain way when they face a decision point (typically a renewal).
If you put the various outcomes on the spectrum, you'd have: Churn of the logo, Downsell (or churn of a division), Renew flat, Renew with uplift (existing license base), Renew with upsell of more licenses
Your health score should give you a birds eye view of what that customer is likely to do from a financial perspective.
Reply
Sign up
If you ever had a profile with us, there's no need to create another one.
Don't worry if your email address has since changed, or you can't remember your login, just let us know at community@gainsight.com and we'll help you get started from where you left.
Else, please continue with the registration below.
Welcome to the Gainsight Community
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.