customer health score
A composite metric that estimates the likelihood a customer will renew, expand, or churn — typically built from product usage signals, support ticket volume, NPS or CSAT responses, and engagement with customer success. Health scores are used by CSMs to prioritize their book of business and by revenue leaders to forecast retention. Common scoring systems range from 0–100 or use traffic-light (red/yellow/green) ratings.
When you'd see it: CSM workflows, CRM/CS platform configuration, churn risk analysis, QBR prep.
Why it matters: CSMs cannot manually track every account with equal attention. Health scoring lets teams apply intervention effort where it matters most — accounts with declining health get outreach, healthy accounts get expansion focus.
Common mistakes: Overweighting login frequency as a health signal. A customer who logs in daily but never reaches their intended use case is not healthy — task completion and value achievement matter more than activity counts.
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