What is Churn Prediction Analysis?
Customer Churn Prediction Model
What is Customer Churn?
Simply put, customer churn is customers that ceased their relationship with your brand. Reducing the churn rate is very important for any online business.
The Added Value of Churn Prediction
The ability to predict that a customer is at risk of churning and prevent it represents a substantial revenue potential. Since the acquisition cost is 5x higher than retaining an existing customer, it makes more sense to invest in customer retention. To retain customers, you must be able to:
- Predict in advance who is about to churn
- Take the best possible marketing actions that will gain results. Following the above will guarantee churn prevention.
Customer Churn Prediction Calculation
In the most manageable approach: a customer churn prediction rate is the number of lost customers divided by the total number of customers.
Advantages of Customer Churn Prevention
- Always seek improvement: Unhappy customers are a good source of fruitful feedback. A brand will learn about aspects that need improvement while executing strategies to make the customer happy and prevent possible churn.
- Reduce brand failure: Customer churn indicates a direct revenue loss. And it can be detrimental to the growth of the business.
- Understand the market: Constantly striving towards reducing customer churn will uncover layers of the unknown market. To know the target market better helps you to reduce customer churn.
- Build a competitive advantage: Having an advantage over the competition is fundamental in keeping your customers happy and reducing churn.
Leveraging Churn Analysis
Exposebox’s churn preventing is based on linking the customer churn prediction model and your marketing activity for each at-risk customer to obtain the best marketing retention results possible.