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Customer Health Score (CHS)

What Is Customer Health Score?

Customer Health Score (CHS) is a composite metric that helps businesses evaluate the overall strength of their customer relationships. This gives companies a more complete view of whether customers are likely to stay, expand, or churn.

How to Calculate Customer Health Score

  • Identify which factors reflect customer health for your business:
  • Not all indicators carry the same importance:
  • Evaluate customers against these indicators:
  • Add up all the weighted factors to calculate a single score for each customer:
  • Use thresholds to categorize customers into groups such as healthy, at-risk, or critical:

Formula for CHS

Because it is customized, there is no single formula. A common structure is:

CHS = (Weighted Product Usage + Weighted Engagement + Weighted Support + Other Factors) ÷ Total Weight

Benchmarks for CHS

  • A score above 70% usually indicates a healthy customer relationship
  • Scores between 40–70% signal moderate engagement and potential churn risk
  • Scores below 40% highlight customers who need immediate attention

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FAQ's

Each business values different factors. A SaaS company may focus on product usage, while a B2B service firm may prioritize support tickets and account growth.

Ideally, CHS should be recalculated in real time or at least monthly. Customer health can change quickly based on usage patterns or support experiences.

CSAT and NPS capture customer opinions through surveys, while CHS combines behavioral and operational data, making it more predictive of churn or expansion.

Encourage higher product adoption. Resolve support issues quickly. Provide proactive training and check-ins. Personalize engagement strategies.