Customer Health Score

Customer Health Score

A Health Score aggregates signals into one number, typically a colour-coded indicator (Green/Yellow/Red) showing whether a customer is healthy, at risk, or in danger of churning.

In our experience, the greatest value comes not from the score itself, but from the proactive action it triggers. In other words, a Health Score without a workflow that responds to red signals is just a dashboard.

Typical structure:

Implementation

Start simple: 3-5 variables, manual scoring. Calculate weekly and use it to prioritise the customer success team's efforts. Furthermore, only add complexity after you have used the simple version for at least one quarter.