What is a customer health score?

A customer health score is fundamentally a metric indicating the likelihood of a customer's continued relationship with a company, often referred to as retention. This score typically consolidates various data points, such as customer engagement levels, purchase frequency, and overall satisfaction, to provide an insight into the customer’s loyalty and future behavior. By focusing on this metric, businesses can proactively address any issues that may arise, tailor their services or intervention strategies, and improve customer satisfaction, thereby reducing churn rates.

The other options, while pertinent to certain aspects of customer relationship management, don’t encapsulate the broader concept of a customer health score. For instance, while measuring customer spending habits can provide insights into purchasing trends, it does not directly assess overall health or satisfaction. Similarly, evaluating customer debt levels may inform financial viability but does not determine customer loyalty or retention likelihood. Tracking customer complaints is essential for service improvement but does not function as a comprehensive measure of customer health on its own.