The first day after a client has signed the contract, they are a churn risk. Most companies using a Customer Health Score typically have the default measure as being ‘green’ for new clients, but it should be ‘red’. What have you done to prove their investment in your product has delivered an improved ROI or perceived business impact? Nothing yet, you still need to earn that.
Day 364 is knowing what your client will do on the day of renewal.
At any given point in the contract lifecycle, you should have a strong idea as to whether your client will renew or not. And if it’s the latter, you need to do something about it, quickly.
To achieve a positive Day 364, you will need to successfully execute a number of things:
Mutually Agreed Customer Success Plan
The plan is a crucial tool in mapping out how you will move the client from red at day 1, through to green on day 364, representing a one year contract. The best plans have deliverables that are assigned to both yourself, and the client. They will have certain milestones that will be specific to your business but might include such items as completed on-boarding, QBRs, specific projects etc.
Customer Health Score
This score is your ultimate barometer of whether a client is happy or not. The health score will usually be determined by a number of metrics that could include, platform usage, number and severity of support tickets and perhaps Net-Promoter-Score. It's quite typical to have the score map to a 'Traffic Light' colour system, with Red representing danger, Amber warning, and Green Healthy. With Day 364, you will start with new clients at Red. Your task is to move to them to Green as quick as possible and ensure they stay there when renewal happens at the end of the contract.
Demonstrable Proof Points
To ensure a client renews their contract, it is vital that you can prove to them the software is delivering the outcomes they expected it to do. This is will completely vary per platform, but common outcomes would be time savings, improved ROI, actionable insights etc. Whatever they may be, it is important that both you and the client are clear on what they are, and that you are able to prove you are reaching them.
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