● Marketing
Customer Health Score
A composite score that evaluates the vitality of the relationship between a brand and its customers by aggregating behavioral and satisfaction signals.
Full definition
The Customer Health Score (CHS) is a composite indicator that measures the vitality of the relationship between a brand and a customer or customer segment. It aggregates multiple signals: purchase frequency, average basket size, return rate, email engagement, review submission, NPS score, and any customer service contacts. Each signal is weighted according to its predictive importance for churn or loyalty.
Unlike point-in-time indicators such as CSAT or CES, CHS offers a longitudinal view of the customer relationship. A score that drops over several consecutive months is a short-term churn warning signal, even if the customer has not expressed explicit dissatisfaction. In e-commerce, it enables segmentation of customers into "healthy," "at risk," and "critical" groups to target retention actions precisely.
E-commerce operators that implement a CHS report an average 15 to 20% reduction in churn rates among at-risk segments, thanks to targeted preventive actions. CHS is particularly used in recurring e-commerce (subscriptions, DTC brands, high purchase frequency) where customer lifetime value (CLV) is a key growth lever.
Concrete example
A cosmetics DTC brand builds a CHS by combining: purchase frequency (30% of score), average basket (20%), email open rate (15%), rating given in the last review (25%), and number of customer service contacts (10%, inverse correlation). A customer with a CHS below 40/100 is classified as "at risk."
For the 12% of customers classified as "at risk," the brand triggers a targeted re-engagement campaign (discount coupon + personalized email). 38% of these customers make a purchase within 30 days. The average CHS of this segment rises from 34 to 61 in 60 days, preventing an estimated churn equivalent to 4.2% of annual revenue.
With Review Collect
Review Collect directly enriches the Customer Health Score by injecting a high-predictive-value satisfaction signal: the post-purchase review rating. With a 40% conversion rate on review requests, the satisfaction score available is representative and frequently refreshed.
Semantic analysis also identifies dissatisfied customers before they become inactive, enabling preventive intervention. A personalized AI response within 60 seconds to a negative review can, on its own, raise the CHS of an at-risk customer by turning a negative experience into a demonstration of brand care.
