Table 3From “What is a customer health score?”
Long-Term Enterprise Valuation Impact
Table 3Long-Term Enterprise Valuation Impact
| Performance Metric | Baseline Operations | Strategy 1 (Naive Risk Priority) | Strategy 2 (Uplift-Guided Priority) | Variance (Strategy 2 vs Strategy 1) |
|---|---|---|---|---|
| Gross Revenue Retention (GRR) | 84.00% | 85.38% | 88.38% | +300 bps |
| Annual Churn Loss (ARR) | \$6,400,000 | \$5,850,000 | \$4,650,000 | -\$1,200,000 |
| Net Retained Margin (after \$500k cost) | \$0 | -\$60,000 | +\$900,000 | +\$960,000 |
| 3-Year Cumulative ARR Impact | Baseline | +\$1,705,000 | +\$5,425,000 | +\$3,720,000 |
| Enterprise Value Multiple Impact | 6.0x ARR | 6.2x ARR | 7.2x ARR | +1.0x Multiple Expansion |
| Implied Enterprise Valuation | \$240,000,000 | \$251,410,000 | \$298,800,000 | +\$47,390,000 |
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Source: Table from this essay. Sources and interpretation are given in the article.

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Growth that compounds
What is a customer health score?
A customer health score combines behavioral signals to predict account risk. Distinguish risk ranking from profitable retention intervention targeting.
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