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Customer Health Score

Acquiring a new customer is five times expensive than retaining the existing one. To ensure the customer achieves the Desired Outcome, businesses have shifted to proactive success v/s reactive support model.

But without any data/statistics about a particular customer, we can’t track that whether the account is heading towards growth or churn. That’s why Customer Health Score has evolved as one of the critical SaaS metrics.

Customer Health Score is a value/score which is used to understand the overall health of customer’s account. The score is calculated on the basis of following parameters:

  • Product usage/frequency
  • NPS
  • Product adoption
  • Purchase data
  • Time spent
  • Interactions/communication with the brand

A typical health score ranges between 1-100, or it could be denoted using color scheme wherein Green indicates Good, Yellow indicates Average and Red indicates Poor health.

What does Customer Health Score indicate?

  • Customer Satisfaction
  • Revenue forecasting
  • Opportunities to upsell/cross-sell
  • Retention
  • Churn
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