Customer Churn Analytics

You can understand about Customer Churn Analytics

The phenomenon where customers stop doing business with a company or cease using its services is referred to as churn. Businesses across various industries are keen on reducing churn as it directly impacts revenue and profitability.

It is crucial to prioritize customer retention when churn occurs, as acquiring new customers is more costly than encouraging repeat purchases from existing clients. This metric holds significant weight in determining the success or failure of a business.

Customer churn analytics provides you with valuable insights into Customer behavior, identifying the patterns, and enables you to come up with strategies to retain customers.

If you do a better job of keeping customers around, you should see your average customer lifetime value increase, making every future sale even more valuable and ultimately improving your growth margins.

Customer Churn Analytics has delivered the below KPIs and Insights:

KPI	Insights
Customers Churned - `Last Six Months`	Customers who have discontinued their relationship with a business or stopped using its products or 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.
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.
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.
Customer churned per Year	Number of customers who have stopped/denied to accept your service offered and this is measured on an annual basis.
# of Customer(s) Churned over time	This metric quantifies the actual count of customers who have churned or disengaged from the business within a specific timeframe, providing a straightforward measure of the customers lost during that period.
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.
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.
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.
Analyze Churn by Service Category	Analyzing the "Top 10 service categories churned by revenue" provides you with the list of service Categories that have contributed the most to the revenue loss resulting from customer churn.
Summary of Customers Churned	This is the comprehensive list of all Customers Churned who have discontinued their relationship with a business within a specific timeframe. This list includes details about each customer such as their Name, Lifetime Value, Longevity, Job, Status, and the date on which they churned.

Computed fields

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.

Top 5 reasons why you would need Customer Churn Analytics for your organization:

Understanding why customers leave can help identify weaknesses and prioritize improvements in processes, leading to greater satisfaction and loyalty. Enhancing the overall customer experience is crucial for retaining customers and preventing churn.
Customer retention: Focusing on retaining existing customers is essential for long-term profitability. Businesses can maximize revenue from their current client base by reducing churn and keeping customers engaged, ultimately increasing profitability.
Increase in revenue and profits: Lowering customer attrition directly impacts revenue and profitability. Businesses can retain more customers by implementing strategies to reduce churn, leading to increased revenues and ultimately higher profits.
Optimize your products and services: Analyzing churn reasons provides valuable insights into areas for improvement in products or services. Addressing these issues reduces customer churn and enhances the quality of offerings, driving future growth and competitiveness.
Lifetime Value Analysis: Calculating the lifetime value of churned customers helps assess potential revenue loss and guides decision-making on resource allocation. Understanding the value lost from churned customers informs strategies for customer retention or acquisition, ensuring optimal use of resources.