Health scores work when they are legible and predictive. Keep the inputs few, stable, and behavior-based (e.g., activation milestones met, usage depth/recency, key feature adoption). Write the attribution rules down so you can explain changes. If you can’t predict churn or expansion better than chance, your model is a vanity metric—fix the inputs before tuning weights.
Attractive aggregate metrics can conceal the details we need to make informed decisions. Separate activity from effect and keep the math boring and consistent. Useful, defensible formulas:
Playbooks without outcomes turn into activity reports. Start with 2–3 customer outcomes you can measure (time-to-first-value, usage depth, key feature adoption). Then write plays that move those, and instrument the deltas. If a play can’t be tied to a metric next week, it’s not ready.
Digital CS isn’t “CS, but cheaper.” It’s behavior‑driven messaging, self‑serve paths that don’t humiliate users, and targeted human help where it changes the slope. I build it around three loops: – Teach the next action. Contextual nudges beat newsletters. – Detect risk early. Silence is a signal. Weird patterns are, too. – Reward progress. Show…
Expansion works when eligibility, timing, and value narrative are explicit. Eligibility = adoption threshold + business context. Timing = observed usage plateau or unlocked capability. Narrative = “outcome next” not “more features.” Track win rate and payback against this criteria or change it.
QBRs drift into slide parades. Run “value reviews” instead: restate the customer’s outcomes, show what moved, and agree on the next two experiments. Skip vanity metrics. End with a one‑page summary the exec can forward without translation.
Involuntary churn is failure to collect (payment issues, expired cards). Voluntary churn is a decision (no value, no budget, switching). The fixes differ. Involuntary churn is mostly ops and billing hygiene. Voluntary churn is product–market fit, onboarding, and value communications. Separate the streams in your reporting or you’ll chase the wrong problems.