qa-aman/health-scorecard

Overview

Based on "Customer Success" by Mehta, Steinman & Murphy, a health score is the single most important operational tool in CS. It converts diverse signals - usage, support, sentiment, financial - into one composite view that tells a CSM where to focus time.

The core insight: a health score is only as useful as the action it triggers. A score without a corresponding playbook is a dashboard that collects dust. Build the score and the response together.

Workflow

Step 1: Define the six scoring dimensions

Score each dimension 1 (at risk) to 5 (healthy). Weight dimensions based on what predicts churn or expansion in your product. Defaults shown below - adjust weights to your context.

Dimension 1 - Product Usage (default weight: 25%) Measures whether the customer is actually using the product.

| Score | Signal | |-------|--------| | 5 | MAU >85% of licensed seats, logins growing MoM | | 4 | MAU 70-85%, stable | | 3 | MAU 50-70%, flat | | 2 | MAU 30-50% or declining >10% MoM | | 1 | MAU <30% or no logins in 30+ days |

Dimension 2 - Feature Adoption (default weight: 20%) Measures depth of product use, not just login frequency.

| Score | Signal | |-------|--------| | 5 | >75% of core features adopted, exploring advanced features | | 4 | 60-75% core features adopted | | 3 | 40-60% adopted, stuck in basic workflows | | 2 | <40% adopted, avoiding key features | | 1 | Using only 1-2 surface features, product barely embedded |

Dimension 3 - Engagement with CSM/Support (default weight: 15%) Measures relationship health and responsiveness.

| Score | Signal | |-------|--------| | 5 | Regular cadence calls, champion responsive within 24h, exec engaged | | 4 | Monthly calls, reasonable responsiveness | | 3 | Sporadic calls, 2-3 day response lag | | 2 | Skipping calls, slow to respond, champion hard to reach | | 1 | Gone dark - no response in 3+ weeks, declined last meeting |

Dimension 4 - NPS / Sentiment (default weight: 15%) Measures subjective satisfaction and advocacy likelihood.

| Score | Signal | |-------|--------| | 5 | NPS 9-10, reference willing, positive qualitative feedback | | 4 | NPS 7-8, satisfied, no active complaints | | 3 | NPS 6-7, neutral, minor grumbles | | 2 | NPS 4-6, frustrated, expressing dissatisfaction in calls | | 1 | NPS 0-3, actively unhappy, escalations or threats to leave |

Dimension 5 - Support Load (default weight: 15%) Measures whether the product is causing operational pain.

| Score | Signal | |-------|--------| | 5 | <2 tickets/month, all resolved promptly | | 4 | 2-4 tickets/month, normal resolution time | | 3 | 5-7 tickets/month or 1 lingering unresolved issue | | 2 | 8-12 tickets/month or critical open issue >2 weeks | | 1 | >12 tickets/month or multiple unresolved critical issues |

Dimension 6 - Financial Risk (default weight: 10%) Measures exposure at renewal and expansion potential.

| Score | Signal | |-------|--------| | 5 | Renewal >6 months, expansion conversation active, budget secured | | 4 | Renewal 4-6 months, no red flags | | 3 | Renewal 2-4 months, no expansion discussion started | | 2 | Renewal <2 months, budget uncertainty, no expansion | | 1 | Renewal <2 months, active budget scrutiny or downsell risk |

Step 2: Calculate the composite health score

Weighted score = sum of (dimension score x dimension weight) Maximum possible score = 5.0

Example calculation:

• Usage: 3 x 0.25 = 0.75
• Feature Adoption: 4 x 0.20 = 0.80
• Engagement: 2 x 0.15 = 0.30
• NPS/Sentiment: 3 x 0.15 = 0.45
• Support Load: 4 x 0.15 = 0.60
• Financial Risk: 3 x 0.10 = 0.30
• Composite: 3.20 / 5.0 - Yellow

Score ranges:

• 4.0-5.0: Green - healthy, standard cadence
• 2.5-3.9: Yellow - watch, increase touchpoints
• 1.0-2.4: Red - at risk, immediate intervention

Step 3: Apply dimension-level overrides (Red Flag Rule)

A single dimension scoring 1 can override a composite Green. Apply Red Flag Rule:

If any single dimension scores 1, the account is automatically Yellow regardless of composite. If two or more dimensions score 1, the account is automatically Red.

This prevents a high-usage account with a gone-dark champion from being masked by a good composite.

Step 4: Document the scorecard

Produce a scorecard entry for each account:

[Customer name] - Health Score Scoring date: [date] CSM: [name]

| Dimension | Weight | Score (1-5) | Weighted | Notes | |-----------|--------|-------------|----------|-------| | Product Usage | 25% | | | | | Feature Adoption | 20% | | | | | Engagement | 15% | | | | | NPS / Sentiment | 15% | | | | | Support Load | 15% | | | | | Financial Risk | 10% | | | | | Composite | | | | |

Status: Green / Yellow / Red Red Flag Rule applied: Yes / No

Top risk signal: [the dimension with the lowest score and why it matters] Recommended next action: [1 specific intervention with a date]

Step 5: Set review cadence

Health scores must be refreshed regularly. Stale scores are worse than no scores because they create false confidence.

• Green accounts: Review monthly
• Yellow accounts: Review bi-weekly
• Red accounts: Review weekly until score improves

Anti-Patterns

1. Composite score only, no dimension breakdown Bad: "Health score is 3.2." CSM doesn't know where to intervene. Good: Show composite plus all six dimensions. The breakdown tells the CSM where to act.

2. Static score never updated Bad: Setting a health score at onboarding and never refreshing it. Good: Mandatory refresh cadence. Green = monthly, Yellow = bi-weekly, Red = weekly.

3. No action linked to the score Bad: Health dashboard exists but no playbook triggers based on tier. Good: Every tier (Green, Yellow, Red) maps to a specific cadence and intervention type.

4. Ignoring single-dimension red flags Bad: Account with 85% MAU rated Green even though champion went dark 6 weeks ago. Good: Apply Red Flag Rule. A gone-dark champion is a churn signal regardless of usage.

5. Using only quantitative signals Bad: Scoring only usage and support tickets because they're easy to measure. Good: Include sentiment and engagement even if they require CSM judgment to score. Hard-to-measure signals are often the earliest churn indicators.

Quality Checklist

• [ ] All six dimensions scored individually before calculating composite
• [ ] Weights adjusted to reflect what actually predicts churn in your context
• [ ] Red Flag Rule applied - single dimension scoring 1 escalates the tier
• [ ] Composite score assigned to Green / Yellow / Red tier
• [ ] Top risk signal identified with a specific recommended action
• [ ] Review cadence set based on tier
• [ ] Scorecard entry dated - staleness is tracked
• [ ] No personal names, internal tool names, or company-specific references in template