AR
Back to KPI Dictionary
Customer SuccessSaaSB2B ServicesFinancial ServicesLeading IndicatorApproved

Customer Health Score

A composite score (usually 0โ€“100) combining product usage, support activity, engagement, and sentiment signals to predict churn or expansion risk.

CompareEdit
Business Question Answered

โ€œWhich accounts are trending healthy versus at risk right now?โ€

What This Tells You

A proactive, blended risk signal that flags accounts needing attention before they churn.

What It Does Not Tell You

The specific root cause of risk for any one account โ€” the score is a triage tool, not a diagnosis; CSMs still need to investigate flagged accounts.

Formula & Example Calculation
Weighted Sum of Health Signal Sub-Scores (usage, support, engagement, sentiment) normalized to 0โ€“100

Numerator

N/A (composite weighted score)

Denominator

N/A (composite weighted score)

Example

Usage (40% weight, scores 85) + Support (20% weight, scores 70) + Engagement (20%, scores 60) + Sentiment (20%, scores 90) = 78 composite.

Recommended Dimensions & Segments
SegmentCSMPlan tierScore band (red/yellow/green)

Recommended visualization: Health score distribution with red/yellow/green segmentation

Technical Implementation Notes

Validate the scoring model's predictive power quarterly by back-testing health scores against actual churn/expansion outcomes โ€” an unvalidated model is just a guess dressed up as a number.

Data Quality Checks
  • Re-calibrate signal weights when back-testing shows declining predictive accuracy
  • Confirm all input data sources are refreshing on schedule (a stale support-ticket feed silently breaks the score)
Common Pitfalls
  • Building a health score once and never validating it against actual retention outcomes
  • Weighting recency-sensitive signals (like last login) so heavily that the score whipsaws on noise
AI Explanation

Get a conversational, stakeholder-friendly explanation of this KPI, generated on demand.

Metadata
Funnel StageRetention
Owner RoleCustomer Success Manager / Ops
CadenceWeekly
Data Sources
Product AnalyticsSupport/Ticketing (Zendesk)CRMSurvey tool
Tags
predictivecustomer-successrisk