Health score bias ?

If you group your health score between three buckets "healthy, neutral, and at-risk", how likely are you to swing in one direction?

For example, leaning more towards putting customers in the at-risk bucket but then this creates a "the boy who cried wolf scenario" where you have too many customers who are "at-risk" but not really. Or staying away from "neutral" and either having customers fall in "healthy" or "at-risk".

What's your take on this?

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Ed Powers

Regression is a statistical technique to analyze data and construct mathematical models that can be used to predict future results. IT can be used for variable data (e.g. money, time) and categorical data (e.g. logo churn, risk categories). Some links to learn more:

Wikipedia post on Regression analysis
May blog article: Using Regression Analysis to Define Customer Health Scores
My Udemy course: CSMath: Data-Driven Decision Making in Customer Success
My instructor-led course with SuccessHACKER: Data-Driven Decision Making for Customer Success

Diana De Jesus

That's a really great point, Thomas! I'll see what I can find around trends. I really appreciate the help.

Diana De Jesus

Thank you, Ed! Yes, you're right, we need a short term solution here.

Do you have any data on regression?

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Diana De Jesus
Customer Success Manager
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Original Message:
Sent: 11-12-2020 14:50
From: Ed Powers
Subject: Health score bias ?

Diana, whenever possible I recommend using objective analysis of data, rather than subjective assessments by CSMs, to set customer health dashboards. Statistical techniques such as regression can do this with a certain level of confidence without investing a lot more time and money on a predictive analytics solution. Absent enough data, which may be the case in your example, a subjective assessment may be all you can do in the short term.

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Ed Powers
Consultant
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Original Message:
Sent: 11-11-2020 15:58
From: Diana De Jesus
Subject: Health score bias ?

If you group your health score between three buckets "healthy, neutral, and at-risk", how likely are you to swing in one direction?

What's your take on this?

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Diana De Jesus
Customer Success Manager
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Thomas Hussenet

Hello Diana
I would advice to look also at the trend (not only the bucket) which might avoid some biases due to cultural or industry difference among your clients (or CSMs) and is a good indicator of health... trend which is also a key input for CSM actions.
Cheers
Thomas

Ed Powers

Diana, whenever possible I recommend using objective analysis of data, rather than subjective assessments by CSMs, to set customer health dashboards. Statistical techniques such as regression can do this with a certain level of confidence without investing a lot more time and money on a predictive analytics solution. Absent enough data, which may be the case in your example, a subjective assessment may be all you can do in the short term.