What is Customer Health Score?
Customer Health Score is A composite metric that predicts customer retention or churn risk based on usage, engagement, and satisfaction signals.
Definition
Customer health scores combine multiple signals into a single indicator of account health. Common inputs include product usage (login frequency, feature adoption, depth of use), support interactions (ticket volume, sentiment, time to resolution), engagement (email opens, webinar attendance, community participation), contract details (renewal date, expansion potential), and NPS/survey responses. Scores are typically displayed as red/yellow/green or as a numeric scale, with thresholds triggering automated playbooks for at-risk accounts.
Why It Matters
By the time a customer says they want to cancel, it's usually too late. Health scores provide early warning by detecting declining engagement patterns weeks or months before churn. They also help customer success teams prioritize their time: instead of checking in equally with all accounts, they focus on accounts showing warning signs or expansion opportunities.
Example
Gainsight calculates a health score for each account based on daily active users (weighted 40%), support ticket sentiment (20%), feature adoption breadth (20%), and executive sponsor engagement (20%). An account drops from green to yellow when DAU falls 30% over two weeks, triggering an automated CS outreach sequence.
Tools for Customer Health Score
Find the Right Customer Health Score Tool
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