Create a customer health score

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want an early warning system for renewals and expansion.

The quick answer

Use one score that blends four signals. Product use or delivery performance. Outcomes delivered against your promise. Relationship signals from surveys and account owner notes. Financial signals such as payment timing and expansion potential. Show red, amber, or green and attach a clear play to each colour. Review the list weekly.

The method in seven steps

Choose four signals and weights
Start with equal weights or bias slightly toward use and outcomes. Example. Use or delivery thirty percent. Outcomes thirty percent. Relationship twenty percent. Financial twenty percent.
Define each signal in plain measures
Use. Logins per week or service level on time.
Outcomes. The promised KPI such as uptime or savings achieved.
Relationship. CSAT or NPS plus a simple account owner note that is scored.
Financial. Days to pay and a yes or no on expansion potential in the next twelve months.
Score on a three point scale
For each signal define green, amber, and red bands. Keep thresholds simple and write them down so scoring is consistent.
Calculate the health score
Turn bands into numbers such as two for green, one for amber, zero for red. Multiply by weights to get a total from zero to two. Map totals to a final red amber green label.
Attach plays to colours
Green. Ask for a review, reference, or expansion meeting.
Amber. Run a light success plan with two actions and a date.
Red. Launch a save plan with executive attention and weekly check ins.
Publish one list
Show name, owner, health, the top risk or opportunity, and the next step with a date. Keep it in your CRM or success tool so everyone sees the same truth.
Review weekly and improve monthly
Meet for twenty minutes to review reds and ambers. Each month check which signals predicted churn or expansion and tune weights if needed.

Example

A services firm used service level on time, outcome achieved against promise, a two question satisfaction pulse, and days to pay. Within two quarters the score predicted churn risk with enough time to act and created a steady list of green accounts for expansion.

Pitfalls and fixes

Too many signals. Keep four and write the thresholds.
Scores with no action. Attach a play to each colour.
Inconsistent data. Use measures you can pull without heavy work.

Checklist

Four signals and weights set
Band thresholds written
Red amber green rules mapped
Plays attached to each colour
Weekly review booked