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How to Turn Customer Health Scores Into Predictable Revenue Growth

Stellafai Coaches
March 27, 2025
4
min read
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Most businesses use health scores reactively, identifying at-risk accounts after problems arise. However, with the right approach, you can leverage customer health data to drive expansions, improve renewals, and create predictable revenue growth.

In this article, we’ll go beyond the basics and explore actionable, uncommon strategies to maximize customer health scores for revenue impact. You’ll also get some hypothetical examples on how you can implement them.

Keep reading to identify 7 ways you can turn customer health scores into predictable revenue growth.

1. Define Health Score Metrics That Align with Expansion Potential

Many companies default to the standard health score metrics like product usage, support tickets, and NPS scores. While these are useful, they don’t always correlate with expansion potential. To drive revenue growth, incorporate metrics that indicate upsell or cross-sell readiness, such as:

  • Feature adoption: How quickly are users adopting new features?
  • Executive engagement: Are decision-makers actively involved, or is engagement limited to end users?
  • Business outcome alignment: Is the customer achieving their strategic goals with your product?
  • Net retention revenue: What percentage of your business revenue is recurring?

For example, let’s say a SaaS company tracking feature adoption, notices a segment of customers rapidly adopting a premium feature. They can create an outreach campaign targeting these accounts with case studies showcasing how other customers benefited from upgrading to the next tier.

2. Segment Customers Based on Growth Trajectories

Instead of treating all healthy accounts equally, segment them based on their revenue growth potential. Look at patterns in:

  • Usage depth vs. breadth: Are they using multiple features or just a few core ones?
  • Contractual engagement: Are they on a month-to-month contract, or have they committed long-term?
  • Industry-specific benchmarks: How does their usage compare to similar customers in their industry?

Example: A B2B software provider identifies customers with high engagement but on monthly contracts. They can offer these accounts exclusive discounts for switching to annual plans, increasing retention, and revenue predictability.

3. Use Health Scores to Prioritize Expansion Playbooks

A strong health score isn’t just a sign of a satisfied customer, it’s an indicator of future revenue. Use health scores to drive the right expansion strategies. For example;

  • Upsells: Customers with high feature adoption and positive ROI outcomes may be ready for premium tiers or add-ons.
  • Cross-sells: If customers are excelling in one product area but underutilizing another, there’s an opportunity for cross-selling.
  • Contract expansions: If a customer is rapidly going beyond their usage, it may be time to switch them to an annual or multi-year contract.

Example: A customer success team identifies accounts using multiple features but not leveraging the automation tool. They initiate a cross-sell campaign demonstrating how automation reduces manual work, leading to an increase in adoption.

4. Integrate Health Scores into Sales and Renewal Forecasting

One of the most underutilized aspects of health scores is their impact on revenue forecasting. Most companies focus on net-new sales forecasts, but renewal and expansion forecasts are equally critical. To make this work:

  • Compare past health scores with renewal likelihood to improve predictability.
  • Identify expansion-ready accounts early based on engagement and adoption trends.
  • Give sales teams visibility into health scores so they can engage with high-potential accounts proactively.

Example: A hypothetical finance team analyzes past renewal data and finds that customers with consistently high health scores renew 95% of the time. They can adjust revenue forecasts to reflect these insights, improving accuracy.

5. Align Customer Health Data with Revenue Teams

Customer success shouldn’t be the only team looking at health scores. To maximize revenue impact, make sure:

  • Sales teams use health scores to inform prospecting and pipeline decisions.
  • Marketing teams leverage health insights to craft nurture sequences or expansion campaigns.
  • Finance teams factor customer health into revenue forecasting.

6. Build a Proactive Outreach System Based on Health Trends

Most businesses reach out only when health scores decline. Instead, set up a proactive system that:

  • Triggers engagement at key health milestones (e.g., after 90 days of stable health, initiate an expansion conversation).
  • Provides value-driven check-ins instead of generic “How’s everything going?” emails.
  • Surfaces peer benchmarks to show customers where they stand relative to similar businesses.

Example: A CSM notices a customer maintaining a strong health score for six months. They reach out with a case study on how similar companies expanded their usage, leading to an upsell conversation.

7. Evolve Your Health Score Model Based on Revenue Outcomes

Health scores should never be static. Regularly refine your scoring model based on:

  • Which factors correlate most with renewals and expansions?
  • What early indicators signal customer contraction or disengagement?
  • How do different customer segments respond to proactive interventions?

Example: A customer success team revises its health score model after discovering that customers attending quarterly business reviews (QBRs) renew 30% more often. They can now adjust their engagement strategy to prioritize QBRs for high-value accounts.

Wrapping Up

Don’t just track customer health - use it to fuel long-term, predictable revenue growth. Align your metrics with expansion potential, integrate health scores into revenue forecasting, and use them to guide proactive outreach. Need help getting started? Book a free discovery call here.

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