Practise vocabulary for NPS, CSAT, CES, customer health scores, and at-risk account communication.
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NPS (Net Promoter Score) is calculated by:
NPS formula: % Promoters - % Detractors. Example: 60% promoters, 15% detractors = NPS of 45. Industry benchmarks vary: NPS of 50+ is considered excellent in SaaS. NPS drives action: promoters to reference, passives to convert, detractors to save.
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CSAT (Customer Satisfaction Score) measures:
CSAT is transactional and contextual — it measures a moment in time, not overall relationship health. Example: after closing a support ticket: 'How satisfied were you with your support experience today?' CSAT = % of respondents choosing 4 or 5 out of 5.
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A Customer Effort Score (CES) of 4.2/7 on onboarding indicates:
CES question: 'The organisation made it easy for me to handle my issue.' 1=strongly disagree, 7=strongly agree. For onboarding CES, the question might be: 'The setup process was easy.' 4.2/7 is below-neutral, suggesting friction. CES predicts churn: high-effort interactions drive customers to switch.
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The phrase 'this account is flagged as at-risk due to declining login frequency' means:
At-risk account identification uses usage signals: login frequency, feature adoption, support ticket volume, NPS scores, and contract renewal date proximity. CSMs use health scores to prioritise proactive outreach before renewal conversations become cancellation conversations.
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A customer health score (Red/Amber/Green) in a SaaS CS team is used to:
Health score models: Red = likely to churn (low usage, high support volume, negative NPS), Amber = at-risk (some warning signals), Green = healthy (high engagement, expanding usage, promoter). CS managers use this for capacity planning: how many at-risk accounts can each CSM handle?