Evaluate SaaS Client Portfolio Health

Business Context

NimbusCRM is a B2B SaaS company with 420 active client accounts across SMB, mid-market, and enterprise segments. In the last quarter, portfolio ARR grew from $24.0M to $24.8M, but leadership is concerned because gross revenue retention fell from 91% to 86%, logo churn rose from 6.5% to 8.2%, and expansion revenue slowed from 7.0% to 4.1% of starting ARR.

Metric Scenario

The VP of Customer Success asks you to define the right metrics to evaluate overall client portfolio health, not just top-line ARR. The portfolio currently includes 260 SMB accounts, 120 mid-market accounts, and 40 enterprise accounts. Over the quarter, 34 clients churned completely, 51 renewed flat, 22 expanded, and 18 contracted. Product usage also weakened: weekly active users per account fell from 118 to 104, average seat utilization dropped from 72% to 66%, and the share of accounts using 3+ core features declined from 48% to 41%. NPS also fell from 39 to 31.

Requirements

1. Define the core metrics you would use to evaluate client portfolio health and explain why each matters.
2. Identify one primary portfolio health KPI and 3-5 supporting metrics.
3. Show how you would calculate the primary KPI and at least two supporting metrics.
4. Decompose the portfolio by segment to diagnose whether risk is concentrated in specific account types.
5. Recommend actions Customer Success should take if deterioration is driven by churn risk, weak adoption, or poor expansion.

Data Available

• accounts: account_id, segment, contract_start_date, renewal_date, ARR, seat_count, CSM_owner, industry
• subscriptions: account_id, period_start, period_end, ARR_start, ARR_end, renewal_status, contraction_amount, expansion_amount
• product_usage_weekly: account_id, week_start, active_users, seats_purchased, feature_a_used, feature_b_used, feature_c_used
• nps_survey: account_id, survey_date, nps_score, response_status
• support_tickets: account_id, created_at, priority, resolution_time_hours, ticket_type