A health score estimates whether a customer is thriving or at risk, using inputs such as logins, feature adoption, support tickets and billing status. Customer success teams use it to decide where to spend their time.
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Building one
- Choose signals that history shows predict churn or expansion
- Weight them and test against past outcomes
- Group scores into simple bands such as healthy, watch and at risk
- Review and recalibrate as the product changes
Keep it honest
A score is only as good as its inputs. Check whether low scores really precede churn before you build processes on it.
Common mistakes
Scoring without validating
An unvalidated score gives false comfort or false alarms.
Frequently Asked Questions
Usually customer success, with input from product and data teams.
Keep reading
- Churn Rate: The rate at which a SaaS company loses customers or recurring revenue over a period. Logo churn counts accounts; revenue churn counts dollars.
- Net Revenue Retention: The share of recurring revenue kept from an existing customer group over a period, including expansion, after downgrades and churn. Above 100% means growth.
- Product analytics: Product analytics tracks how users behave inside a product, using events tied to user and account IDs to study activation, retention and feature use.
- Feature adoption: Feature adoption is the share of users who actually use a given feature, and it shows whether what you built delivers value.
- Account-Based Marketing: A B2B strategy that targets a defined list of high-value companies with coordinated, personalized marketing and sales, rather than casting a wide net.
- Activation Rate: The share of new sign-ups who reach a defined first moment of value in a product. The bridge between acquiring users and turning them into customers.
- Alternatives Page: A page that answers “[competitor] alternatives” by listing several real options, written for buyers who are leaving or ruling out a product.
- Buying Committee: The group of people inside a company who influence, evaluate and approve a B2B software purchase, from end users to finance, IT and legal.
