Discover why customers are leaving and implement pre-emptive measures, show your customers that you care.
Customer churn refers to the loss of customers within a specific time frame.
Identifying customers who are canceling or declining a Job can be beneficial in pinpointing areas for improvement and prioritizing enhancements in the bidding process.
Reducing churn is crucial as it has a direct impact on revenue and profitability, prompting companies to prioritize customer retention strategies.
- Metrics and Description
- Calculated fields
- Benefits and Advantages
- Customer Churn Analytics short video tour
Customer Churn Analytics provides you with vital metrics and valuable insights.
| Metrics | Description |
| Customers Churned - `Last Six Months` | Customers who have discontinued their relationship with a business or stopped accepted services within the past six months. |
| Customers Churned - `This Year` | Customers who have discontinued their relationship with a business or stopped using its products or services within the current calendar year. |
| Customers Churned - `Last Year` | Customers who have discontinued their relationship with a business or stopped using its products or services from the previous calendar year. |
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Analyze your Churn based on Customer Longevity |
Customer longevity refers to the length of time a customer continues to engage with your product or service. Essentially, you're examining whether there's a correlation between how long someone has been a customer and their likelihood of leaving. |
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Churn by Customer Lifetime Value |
Analyzing churn count by customer lifetime value (CLV) helps you to realize and understand the value a customer brings to your business over their entire relationship with you and their likelihood of churning. Customer lifetime value represents the total value a customer contributes to your business over the entire duration of their relationship with you, taking into account factors such as revenue. |
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Customer churned per Year |
Customers who have declined or stopped accepting your services annually. |
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# of Customer(s) Churned over time |
This metric quantifies the number of customers who have churned or disengaged within a specific time frame, showing the total customers lost. |
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Revenue Churn over time |
This is your financial metric that measures the loss of revenue from customers who have discontinued or reduced their use of a product or service. It is a critical metric for your business, reflecting the impact of customer attrition on overall revenue. |
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Analyze Churn by Customer Type |
Analyzing "Revenue Churn by Customer Type" involves assessing how the loss of revenue due to customer churn varies across different customer segments or types. |
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Analyze Churn by Service |
Analyzing Top 10 services churned by revenue provides you with the list of services that have contributed the most to the revenue loss resulting from customer churn. |
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Analyze Churn by Service Category |
Analyzing the Top 10 service categories churned by revenue shows which service categories contributed most to revenue loss from customer churn. |
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Summary of Customers Churned |
Comprehensive list of all customers who have churned within a specific time frame. Details about each customer include their Name, Lifetime Value, Longevity, Job, Status, and churn date. |
Calculated Fields
Identifying Customer churn:
Customers who have canceled or declined your proposal and have no active jobs in progress are considered as Churned.
Customer churn is measured using customer Churn rate. That’s the number of people who stopped being customers during a set period of time, such as a year, a month, or a Last 6 months.
Churn rate:
Customer churn rate is the percentage of customers who cancel or decline Jobs within a specific time frame.
Customer Churn Rate (%) = ( (#) Total customers churned this time period / (#) Total customers at the start of the time period ) X 100
For example:
Customer churn rate is calculated as 3% when 150 customers were lost out of 5,000 at the beginning of the last 6 months.
( 150 customers churned Last 6 months / Total Customers starting Last 6months 5000 customers ) X 100 = 3
Customer Longevity :
Customer longevity refers to the duration of a client's engagement, loyalty, and transactions with a business.
Customer Longevity (in yrs) = FirstAcceptedDate - LastAcceptedDate
Here are the business constraints that are applied.
- Only active Customers are considered for computation.
- Only active Jobs are considered for computation.
- Churn Rate: The percentage of customers who stop using a product or service over a specific period.
- Customer Lifetime Value (CLV): The Invoiced Amount attributed to the entire future relationship with a customer.
7 ways Customer Analytics can reduce Customer Churn:
- To Reduce Customer Churn
- Focus your attention on your best customers.
- Analyze churn as it occurs
- Show your customers that you care
- Use churned customers to analyze why they are leaving, when churn happens, and implement preemptive measures.
- Customer retention: Retaining existing customers is crucial for long-term profitability, maximizing revenue by reducing churn and keeping customers engaged..
- Increase in revenue and profits: Reducing customer churn boosts revenue and profitability, as businesses retain more customers through effective strategies, resulting in increased profits.
- Instead of waiting to connect with your customers until they reach out to you, try a more proactive approach. Communicate with them all the perks you offer and show them you care about their experience, and they'll be sure to stick around.
- Analyze churn reasons to improve products and services, reduce churn, enhance quality, and drive growth and competitiveness.
- Lifetime Value Analysis: Calculating the lifetime value of churned customers guides decision-making on resource allocation, informing strategies for customer retention and ensuring optimal resource use.
Customer churn analytics video tour