Customer Health Is Not Churn Predictor
I’d like to be clear: Customer Health, is not designed to be a churn predictor. Think about yourself, going to a regular checkup at the doctor’s office. A good doctor will check your vital signs: blood pressure, height, weight and in some cases will ask for a blood test that goes deeper into various indications like body fat, cholesterol, vitamin deficiency and so on.
A checkup is not designed necessarily to determine if I’m going to die this year or not. I’ve recently lost 20 pounds since my doctor noticed my extra weight and discovered fat in my blood.
I’ve changed my diet, became vegetarian cut back heavily on alcohol consumption. I’ve taken action based on the finding of my health check.
Companies should monitor customer health – it’s easy! But they should do it in order to take action. Prioritize based on health (good/green – bad/red) and determine the necessary action based on the symptoms (health reasons).
I’ll write another post about the importance of churn/upsell predictions.