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Metrics

Customer Health Score

A composite metric that combines multiple signals—such as product usage, support tickets, and survey scores—to predict the likelihood of a customer renewing or churning.

A Customer Health Score aggregates multiple data points into a single indicator that predicts whether a customer is likely to renew, expand, or churn. Unlike individual metrics like NPS or CSAT, a health score provides a holistic view by combining behavioral, financial, and sentiment signals.

Typical inputs to a health score include product usage frequency, feature adoption breadth, support ticket volume and sentiment, NPS or CSAT responses, contract renewal date proximity, executive sponsor engagement, and billing history.

Health scores are most commonly represented on a simple scale—red, yellow, green—or as a numeric score from 0 to 100. The key is to validate the model against actual outcomes: does a "red" health score actually predict churn? Regularly back-testing and tuning the model is essential.

Customer success teams use health scores to prioritize outreach. A customer with a declining health score gets a proactive check-in before they reach the point of no return. When paired with automated alerts, health scores enable scalable, proactive customer management.

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