Customer Health Score is a composite metric combining multiple signals—product usage, support interactions, billing status, engagement patterns—into a single indicator predicting whether a customer is likely to renew, expand, or churn.

Health scores attempt to answer the question CSAT and NPS can't: what is this customer actually going to do? A customer might report high satisfaction but show declining usage. Another might complain constantly but expand every year. Behavior matters more than sentiment.

There's no standard formula—every company builds their own based on what predicts outcomes in their business. Common inputs include: login frequency, feature adoption depth, support ticket volume and sentiment, billing delinquency, stakeholder engagement, and NPS/CSAT trends. Weight the inputs based on which correlate most strongly with renewal in your historical data.

The risk with health scores is false precision. A score of 73 vs 75 is meaningless if your model isn't validated. Start simple: red/yellow/green based on 3-5 signals you know matter. Validate against actual churn. Refine over time. The goal is to trigger intervention before at-risk customers leave, not to create a perfect predictive model.

Related terms: Customer Churn Rate, Lifetime Value (LTV), Net Promoter Score (NPS)