If you implement scoring rules for identifying at-risk customers, you will want to be sure the rules actually help your customer success organization, i.e., that the rules provides a return on investment (ROI). A scoring rule with low accuracy hurts your organization by reducing efficiency and effectiveness. Many scoring rules are developed from the experience and intuition of customer success managers, but most have not been validated as to their customer coverage or predictive accuracy – the two facets that determine ROI in predicting churn. What are these facets and how do they affect your organization? Customer coverage is the percentage measurement of the customer base that the scoring rule provides insight. For example if a rule is implemented based [...]
