For Web3 brands, understanding and improving user engagement, satisfaction, and loyalty is essential. That’s where Customer Health Scores (CHS) come in. A CHS allows you to quantify a user’s relationship with your brand—revealing who is thriving, who’s disengaged, and who might churn.
By analyzing key behavioral and product metrics and applying a structured scoring model, Web3 teams can assess customer health, identify drop-off signals early, and implement strategies to drive adoption, retention, monetization, and advocacy.
A Customer Health Score measures the likelihood that a user will churn or upgrade
In this guide, we’ll break down how Web3 Customer Health Scores work, which metrics matter, how to build scoring models, and how tools like Formo help automate and scale this process.
Key Takeaways
A Customer Health Score (CHS) tracks a user’s engagement, satisfaction, and likelihood to churn or upgrade.
CHS is built from metrics like product usage, renewals, upsells, ROI, and onchain activity.
Scoring models can be visualized with color codes, grades (A–F), or percentages.
CHS enables proactive customer success efforts that drive growth.
Formo helps you collect relevant data and calculate CHS with real-time Web3 insights.
What Is a Customer Health Score?
A Customer Health Score (CHS) is a quantitative metric that reflects a user's overall engagement, satisfaction, and relationship with your product or service. It helps identify healthy customers, spot churn risks early, and optimize retention strategies.
In Web3, where user data is decentralized and harder to track, a CHS brings clarity by consolidating signals from onchain and offchain behavior.
Web3 Customer Health Score Metrics
CHS is calculated from a mix of behavioral, product, and engagement metrics. These often include:
Product Usage: How often users engage with features or reach product milestones.
User Advocacy: Indicators like referrals, reviews, and social sharing.
User Engagement: Activity across channels—email, app, community, and more.
User Relationship: Loyalty, trust, and long-term commitment signals.
User ROI: Value delivered to users (e.g., revenue generated, time saved).
Renewals: Frequency and consistency of subscriptions or repeat usage.
Upsells: Willingness to upgrade or purchase add-ons.
Support: High support volume may indicate poor UX or product gaps.
Billing History: On-time payments and subscription stability.
Community Involvement: Forum participation, governance voting, or social mentions.
How to Calculate a Web3 Customer Health Score
5 Key steps to calculate Customer Health Scores
To effectively implement CHS in your Web3 startup:
1. Define Customer Health
Start by setting your goal. Are you measuring churn risk? Readiness to upgrade? Overall satisfaction? Clarify what a “healthy” user looks like for your brand.
2. Select Predictive Metrics
Choose metrics that align with your goal—such as product usage frequency, wallet activity, support tickets, or referral rate. These should signal future behavior.
3. Create a Scoring System
Assign points to positive behaviors (e.g., product milestones achieved) and subtract for negative ones (e.g., repeated complaints). Normalize and weight scores appropriately.
4. Segment Users
Organize users into cohorts based on score ranges (e.g., Healthy, Neutral, At-Risk). Tailor outreach based on segment behavior and value.
5. Visualize Scores
Use dashboards, color codes, or alerts to make CHS actionable for your customer success team.
CHS Scoring Models: 3 Common Approaches
Color Code Scale
Examples of Color Code Scale I Source: Totango blog
Use red-yellow-green color coding to indicate user health:
Green = Healthy
Yellow = Needs Attention
Red = At Risk
Grading Scale (A–F)
Examples of Grading Scale I Source: HubSpot
Grade user health as you would an exam:
A = Power user
C = Neutral
F = Churn risk
Percentage Scale
Examples of Percentage Scale I Source: Custify
Assign a CHS as a percentage (e.g., 85%) based on weighted metrics. This offers a nuanced view of health across multiple dimensions.
16 Key Questions to Assess Customer Health in Web3
Here are some guiding questions to customize your CHS:
How long has the user been with you?
What is your user churn and retention rate?
How many products or features are they using?
What is their purchase frequency?
Is product usage increasing or declining?
Has their engagement grown over time?
Are they upgrading or renewing?
Do they influence revenue through referrals or upsells?
How often do they engage with your channels?
What kind of feedback do they give—complaints or praise?
Are they active in your community oron social media?
What is their NPS or referral rate?
Are they responding to surveys or feedback requests?
What is their Lifetime Value (LTV)?
Are they returning on time and consistently?
What industry-specific metrics (TVL, volume, revenue) matter for your app?
Use Formo to Track and Improve Web3 Customer Health
Formo is a data platform that helps Web3 marketing teams track, visualize, and act on CHS data. It combines:
Web3 Form Builders for easy user data collection
Onchain analytics to track wallet behavior
CRM tools to score and segment users in real time
With Formo, you can:
Collect signals from across touchpoints
Visualize CHS dashboards
Automate alerts for churn risks or upsell opportunities
Drive proactive retention strategies
Get started with Formo and accelerate your growth onchain.
Why Web3 Customer Health Scores Matter
Web3 Customer Health Scores help teams understand user value, improve retention, and scale community-driven growth. By combining behavioral signals and blockchain data, you can make smarter decisions, deliver better experiences, and grow faster.
Follow us on LinkedIn and Twitter, and join our community to learn how Web3 teams turn insights into action with Formo!
Read more:
1. What is a Customer Health Score, and why is it important in Web3?
A Customer Health Score (CHS) is a composite metric that measures a user’s engagement, satisfaction, and likelihood to stay loyal to a product or platform. In Web3, where user identities are pseudonymous and retention is more challenging to maintain, CHS is essential for sustainable growth. It helps teams identify churn risks, spot high-value users for upsells or advocacy, and make informed, data-driven decisions to improve user experience and lifetime value.
2. What key metrics are used to calculate a Web3 Customer Health Score?
A robust Web3 CHS is built from both onchain and offchain metrics, including:
Product usage frequency and feature adoption
Renewals, upgrades, and upsells
Wallet activity (e.g., token holdings, staking, bridging)
Engagement across marketing and product touchpoints
Support tickets and billing events
Community participation and referrals
These metrics create a holistic view of each wallet's behavior and user journey.
3. How do you effectively calculate a Web3 Customer Health Score?
To build an accurate CHS model:
Define your objective (e.g., reduce churn, increase upsell readiness).
Select key indicators aligned with your goals.
Assign weights or scores to each behavior or signal.
Segment users into categories (e.g., healthy, at-risk, churned).
Visualize results in real-time dashboards to enable fast action.
A feedback loop with your CS or growth team ensures continuous model improvement.
4. What are the most common scoring models for Customer Health Scores?
Popular CHS models include:
Color Scale: Green (healthy), Yellow (at risk), Red (critical)
Letter Grade: A (excellent) to F (likely churn)
Percentage Scale: 0–100 based on weighted activity and engagement
Each model helps stakeholders quickly understand user health and take appropriate action.
5. How does Formo help Web3 teams implement Customer Health Scores?
Formo is a Web3-native analytics and CRM platform built for product and marketing teams. It enables seamless CHS tracking by integrating:
Web3 forms for zero-friction data collection
Onchain analytics for real-time wallet insights
Customer segmentation and scoring by behavior
Dashboards and alerts to monitor user health
Formo empowers teams to take proactive steps in retention, upselling, and community building with confidence.
