Customer Churn Analysis

Customer Churn Analysis

What is Customer Churn?

Customer churn is when existing customers leave your business (churn) and go to your competitors, or stop purchasing your product or service altogether. Customer churn is also known as customer attrition.

Why Customer Churn Analysis is Important

While customer acquisition costs vary by industry (from a few dollars to thousands of dollars), it’s unarguably easier to keep your existing customers happy than it is to acquire new ones.

Customer churn analysis is the process of using data to better understand when a customer is at risk of ending their relationship with you – ideally long enough before it happens that you have the opportunity to prevent churn from happening in the first place.

The 3-Step Customer Churn Analysis & Prevention Process

The 4Sights Analytics team diagnoses all of your available data, bringing in external customer churn data when applicable, to provide you with actionable churn analysis and insights.

Our three-step customer churn analysis & prevention process exists to help identify large account closures and revenue losses before they occur.

Customer Churn Analysis for Greater Visibility

We start by analyzing both churned and current customers using internal and external data. We work to identify individual factors leading to churns, all in an effort to build a 360º view of your customer journey.

Customer Churn Prediction

Once we have a grasp on the reasons your customers are churning, we can start to build predictive customer churn models that help reveal hidden patterns in customer behavior. The model we build for our clients assigns a score to every customer, and, based on the findings of our initial customer churn analysis, assign “high,” “medium,” or “low” churn likelihood values to each customer.

Customer Churn Prevention

With the initial analysis completed and prediction scores in place, we can apply recommendations specific to your business and profit model by building a next-best-action strategy that helps your team proactively address high-risk customers before they churn.

Often, customer churn prevention techniques can be small tweaks, like offering discounts on upgrades, improved communication, and even the addition of a new support team member.

You and your team can use the discoveries made during the 3-step customer churn analysis & prevention process to make immediate decisions, and continuously monitor customer churn using custom-built dashboards. Over time, you’ll be able to implement changes that address the root causes of churn, all the while building a better product & service.

 

Custom Solution Development

 

Customer Churn Dashboard

The example dashboard included above comes from one of our Salesforce implementations. In addition to Salesforce customer churn analysis, we can use data directly from a database (AWS, Azure, Google Cloud, Knime, etc.) or integrate with other tools and services.

By using the 4Sights Analytics 3-step customer churn analysis & prevention process, you will gain access to a new 360º viewpoint of your customers and high-value accounts. The actionable improvements you make by implementing our findings will result in improved customer satisfaction – and most importantly: increased customer lifetime value.

Interested in getting a quote for your business? Schedule a consultation with a 4Sights team member.