Customer Health Score
Definition
A customer health score is a composite metric that combines signals like product usage, support activity, satisfaction, and engagement into a single rating that predicts whether a customer is likely to renew, grow, or churn.
How to calculate it
There's no single formula — teams choose weighted inputs and roll them into a score or a red/yellow/green band. A typical model might weight product usage 40%, support tickets and sentiment 30%, engagement (logins, feature adoption) 20%, and survey scores like NPS 10%, then combine them.
For example, a customer with declining logins, several unresolved tickets, and a low recent CSAT would score "at risk" even if their contract is current. The exact weights should reflect what actually predicts churn in your own data.
Why it matters
Health scores turn scattered signals into an early-warning system, letting success and support teams intervene before a customer churns rather than after they cancel. Support data — ticket volume, escalations, sentiment, and resolution quality — is a core input, which is why CX performance feeds directly into retention outcomes.
Frequently asked
What goes into a customer health score?
Commonly product usage and adoption, support activity (ticket volume, escalations, resolution quality), satisfaction scores like CSAT or NPS, and engagement signals such as logins — weighted to reflect what predicts churn for your business.
How is a health score different from NPS or CSAT?
NPS and CSAT are single survey-based measures; a health score is a composite that blends those with behavioral and support data into one forward-looking indicator of account risk.
Related terms
Customer Churn Rate
Customer churn rate is the percentage of customers who stop doing business with a company over a given period — canceling, not renewing, or lapsing — relative to the total at the start of that period..
Customer Retention Rate
Customer retention rate is the percentage of existing customers a company keeps over a given period, excluding any new customers acquired during that time..
Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is the total net revenue a business can expect from a single customer across the entire length of their relationship..
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a company, product, or service to others, on a 0–10 scale..
Sentiment Analysis
Sentiment analysis is the automated classification of the emotional tone of a message — typically positive, negative, or neutral — so teams can gauge how a customer feels and respond appropriately..
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