Customer Health Score
Also known as: Health Score, Account Health Score
Definition
A customer health score combines product usage, support activity, executive sponsorship, contract status, adoption milestones, NPS or sentiment, payment behavior, and commercial engagement into a view of retention risk.
Health scores are useful only when they predict decisions. A score that does not trigger a save play, executive escalation, renewal action, or expansion motion is just dashboard decoration.
For PE-backed companies, health scores should be tested against actual renewal and expansion outcomes.
Related terms
- Churn Rate — The rate at which customers or recurring revenue leave over a defined period.
- Customer Success — The operating function responsible for customer outcomes, adoption, retention, expansion, and renewal health.
- Net Revenue Retention (NRR) — The percentage of recurring revenue retained from existing customers a year later, including expansion, after subtracting churn and contraction. The single most-watched B2B SaaS valuation metric.
Where this gets applied
- Revenue Architecture — ICP, deal-desk, sales-engineering ratios, MEDDPICC, deal-stage definitions. Move win rates from 29% to 68%.
- GTM Execution — Pipeline coverage, top-down/bottom-up motion, AE/SE ratios, comp realignment, partner-channel structure.
- Unit Economics — CAC payback, NRR, gross margin by segment, cohort analysis, paid-on-bookings vs. paid-on-cash.