Customer Health

In the crowded world of digital products, understanding customer health isn’t just a nice-to-have—it’s critical. The Customer Health Score offers a clear lens into how deeply and frequently users interact with your product. But why does it matter? And how can it propel your business forward?

Why It Matters

Customer health is like your product engagement but s stronger signal. It signals sustained value.

• A high health score means your users are thriving, finding value, and returning consistently.

• A low health score? That’s a warning sign of potential churn.

Tracking customer health empowers your team to act proactively, identifying where to nurture relationships or address risks to keep accounts on track.

How It’s Calculated

The Customer Health Score simplifies complex data into actionable insights through two steps:

Raw Score

Every user action is tracked, weighted, and summed up:

Raw Score = ∑(Event Count × Event Weight)

Example:

• 3 new leads created (weight 9)

• 5 meetings scheduled (weight 7)

• 10 calls logged (weight 5)

Raw Score = (3×9) + (5×7) + (10×5) = 112

Normalization

Raw scores are scaled to a clean 1–100 range, with the 90th percentile pegged as the gold standard (100). An exponential function ensures clarity, turning raw data into insights that reveal the true health of your accounts.

Signals to Watch

• Healthy Accounts: A score of 85/100 shows users are thriving.

• At-Risk Accounts: A score of 20/100? It’s time to act fast.

Who Uses It and When

• Customer Success Teams: Spot low-health accounts and address risks before churn occurs.

• Product Managers: Identify thriving users for feedback and testing.

• Sales Teams: Use data to guide renewals and expansion opportunities.

• Marketing Teams: Target highly healthy users for upsell campaigns.

Monitoring customer health is just the beginning. Dive deeper into frequency metrics—they uncover not just who’s active, but how consistently they engage. Because in the end, consistent customer health is the foundation for long-term growth.