Customer Health Score: Proactively Fight Churn and Retain Your Users

A customer health score is an accumulation of predetermined data points that signal whether a customer is likely to churn, grow, or renew a contract at the same rate. It is guided by a scorecard which covers the percentage outcome any customer can be assigned and flags customers as green, yellow, and red. Monitoring customer health is important for making informed decisions on future product and feature development, reducing churn, increasing customer satisfaction, retention, lifetime value, and customer acquisition and revenue via referrals. To measure and calculate a health score, segment your users based on their personas or pricing plan, determine impactful customer actions, assign each action an impact score number, track the number of times a user takes each action within a specific time frame, add all action results together, and align the result alongside your customer health scorecard.