How to Create a Customer Health Score
A customer health score combines multiple signals into a single metric that predicts account outcomes. It enables your team to proactively intervene with at-risk customers and double down on healthy accounts with expansion opportunities.
Select health indicators
Choose 5-8 signals that correlate with retention: login frequency, feature breadth, NPS score, support ticket volume, and billing status.
Weight your indicators
Not all signals are equally predictive. Analyze historical data to determine which indicators most strongly predict churn or expansion.
Define scoring thresholds
Create clear categories: healthy (green), at-risk (yellow), and critical (red). Define specific score ranges and triggering conditions for each.
Automate data collection
Pull product usage data automatically from analytics, NPS from surveys, and support data from your ticketing system. Manual health scores do not scale.
Build intervention playbooks
Define specific actions for each health category. Green accounts get expansion outreach; yellow get check-in calls; red get urgent intervention.
Validate and iterate
Measure whether your health score actually predicts churn. Compare predicted outcomes with actual outcomes quarterly and adjust weights.
Pro Tips
- Weight leading indicators (usage trends) more heavily than lagging indicators (NPS).
- Include both product engagement and relationship signals in the score.
- Make health scores visible to the entire customer-facing team.
- Set up automated alerts when accounts move from green to yellow.
Conclusion
A customer health score turns reactive firefighting into proactive account management. Build it with signals that actually predict outcomes, validate it against real churn data, and use it to drive systematic intervention playbooks.
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