Customer Health Score

A Customer Health Score is a composite metric that combines multiple behavioral signals into a single indicator of a customer's relationship health with a brand. Scored on a 0-100 scale, it provides a quick assessment of whether a customer is thriving, stable, at-risk, or critical.

The score typically incorporates five categories of signals, each with configurable weights: Recency (days since last purchase, normalized against expected purchase cycle), Frequency (order count relative to cohort average), Monetary value (total spend and AOV trends), Engagement (email opens, site visits, app usage), and Support interactions (ticket volume, sentiment, resolution satisfaction).

Customers are tiered based on their score: Healthy (70-100), Stable (50-69), At-Risk (30-49), and Critical (0-29). Each tier triggers different retention strategies—from loyalty rewards for healthy customers to proactive outreach and personalized offers for at-risk and critical customers. The health score becomes particularly powerful when combined with predictive churn models, enabling teams to intervene before behavioral decline translates into cancellation.