What is a customer health score?
A customer health score is a value that indicates the long-term prospect for a customer to drop off or, conversely, to become a high-value, repeat customer through renewal or Cross-selling or up-selling strategies.
How to measure a customer health score
Data for customer health is often visualized by using a traffic-light model, in which green signifies a healthy customer account; yellow signifies that the customer account is in stasis and may need prodding; and red signifies that the account needs immediate attention.
Health can also be identified with a Likert-type score, with ranges between 1 and 100. Scores can be descriptive or predictive. Descriptive scores focus more on the current state of customer health, whereas predictive scores use current data triggers to predict a customer's future propensity to drop off or renew.