Customer Health Scoring
How to create and use customer health scores to prioritize retention efforts.
What is a Customer Health Score?
A customer health score is a single number (or band like Green / Yellow / Red) that summarizes how likely a customer is to stay, expand, or churn. It’s built from usage, support, billing, and engagement data so teams can prioritize who to focus on.
What to Include in the Score
Typical inputs: product usage (frequency, depth, key feature adoption), support (ticket volume, resolution time, sentiment), billing (payment success, plan changes), and engagement (logins, responses to outreach). Weights depend on what actually predicts outcomes in your business.
Building the Score
Start with a simple formula: e.g. combine normalized usage trend + support load + payment status into a 0–100 score or traffic-light band. Compare score bands to actual churn/expansion over time and adjust. More advanced: use a predictive model (e.g. churn probability) as the health score.
Using Health Scores
Use scores to route at-risk accounts to CS, trigger automated sequences, and prioritize renewals. Pair with value (MRR/LTV) so you focus on high-value, low-health accounts first. Review and recalibrate the score periodically.