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  3. A Great Customer Health Score Starts Here: Our Top 5 Moves

Article A Great Customer Health Score Starts Here: Our Top 5 Moves

Lauren Sickel Feb 3, 2022

It should be no secret that growing a company isn't only about converting new customers. We know that growth means building a loyal relationship with your customers that endures hardships they or your company may face. A company that consistently grows to new heights is one that nurtures the connection with its customers and does everything in its power to make and keep them happy. A customer health score is an important business metric to help you monitor the strength of these relationships and take the right next step with each customer.

What Is A Customer Health Score?

A customer health score is a metric for determining whether customers are healthy and likely to grow with your company or if they're at risk of churning. It's a tool that businesses use to measure how happy — or unhappy — customers are with the products and services they're currently utilizing.

A customer health score typically includes a number of different inputs to arrive at an overall score. The score is both art and science. Common inputs include product usage; customer invoice data; input from frontline teams; and key indicators of customer happiness from other systems, such as support requests. Very importantly, the health score must incorporate key data points that indicate a customer is meeting their goals using your product.

Why Are Customer Health Scores Important?

Businesses need to evolve to maintain and grow their market share; the businesses that evolve to meet their customers' needs will thrive, and those that don’t will fall. A customer health score is a metric that allows businesses to adjust to their customers' needs, ensuring loyal customers and new customers alike are happy.

customer health score customer needs

Customer health scores help companies determine what the best move is as their customers change over time. It helps a company decide whether or not someone is ready for an upsell, if they're having difficulty navigating a service, or if they're in the at-risk territory and need immediate care before they churn.

What Exactly Do Customer Health Scores Track?

Customer health scores are customizable and unique to every business. You can use them to predict what a customer is likely to do next in their journey with your business. So, the way a company develops its customer health score is vital to its success.

Consider the following when determining how to create a customer health score:

  • What is your most desired outcome?

  • What predictive signals are you looking for?

  • How much weight should each one of these signals carry in your customer health score?

  • How will the customer health score be visualized for each customer?

The Top 5 Moves For Great Customer Health Score Management

1. Get the Right Data in One Place

To understand customer health, you need the right data easily accessible. Many businesses take a crawl-walk-run approach here and start with key product usage data points that show that the customer is likely getting value from the product. You don’t necessarily need every single click in the product to infer customer success.

Customer invoice data (or revenue data) is also important to add context to product usage. This allows you to assess whether the price the customer is paying is in line with what they are getting from the product. Invoice data also gives you a data point to prioritize your efforts on customers most valuable to your business.

There is a lot of data you will want to look at to give you visibility into your customer, such as tracking email conversations and support tickets. When it comes to health scores, it’s helpful to focus on the critical few data points indicative of customer success with your product. Customer Success software can help you with both customer visibility and health scoring, with KPI tracking over time.

2. Set Key Questions for Customer Success Managers to Answer

After discovering key metrics in usage and revenue, you can dig deeper to learn why those numbers are where they are. And most importantly, are your customers happy?

Your Customer Success Managers should fill in the blanks and remove any uncertainty about whether or not your customer health score is accurate.

Comb through your customers' daily actions and look at all the problems you help them solve. Now, think of the questions that only your frontline team can answer.

  • How engaged were they on calls?

  • How happy are they when using our product?

  • How often do they try to do something that our service isn’t currently capable of?

All of this is information that product usage data alone cannot collect.

3. Incorporate Frontline Feedback From Customer Success Managers

A good customer health score isn't just about data; it's about context. Once you create a customer success North Star and develop questions to ask when determining your customer health score, you'll need to know how it's working. A computer can't tell you how the process is going, but your Customer Success Managers can.

customer health score context


The way you assess your customer health score will evolve as you roll it out. You need your customer success team's feedback in order to know what's working and what isn't. Incorporating frontline feedback from your customer success managers will help your team to efficiently collaborate on ideas that include the experience of working with your customer health score.

4. Set Leading Indicators

‌No health score is perfect without making it remarkably complex, and that’s okay.

Health scores are a key measure of customer success. It’s also important to define leading indicators that help you identify outliers to your health score. An example outlier is an observation from a frontline Customer Success Manager who determines that a customer is unhappy, even though they are a power user of the product.

Here, you want to think about signals that might not be fully amplified in your health score. Often, these are what frontline teams are hearing, such as interest in upgrade functionality, changes in the customer team (or sponsor), or changes in interaction patterns. In any case, you will want to think about these leading indicators so you can get ahead of changes reflected in your health score.

5. Draw Conclusions from Both Qualitative and Quantitative Data

We are a human business; as a matter of fact, all businesses are. That's why it's important that numbers aren't the only things running the show. It is imperative that qualitative and quantitative data work in harmony.

You can track numbers indicating how often a customer uses your product, buys an upgrade, or leaves a positive review. However, it takes qualitative information from your Customer Success Managers to understand the data, read the customers in ways numbers can't, and make instinctual decisions about moving forward. When it comes down to it, you're selling to humans, so you need to incorporate human information.

Build Customer Health Scores That Help Your Company Grow

Quala is a platform for SaaS businesses that provides a rich, contextually accurate customer health score by incorporating both qualitative and quantitative signals into the health score.

Our fully-customizable health score factors in what customers say, teams observe, and customers do. This rich context reduces false positives (and false negatives) to make sure you are always taking the right next step with each customer, whether upselling, saving at-risk customers, or providing timely education and support. Even better Quala can trigger customer workflows based on changes in health score and other leading indicators.

To learn more, request a demo today.