What is Churn Analysis?
Churn Analysis is the method of analyzing why a customer quit his or her relationship with a company. It refers to the customer attrition rate in a company. This analysis helps companies to identify what caused customer churn and implement effective strategies to increase retention.
Why is Customer churn analysis important for an organization?
Customer churn analysis is important for companies to plug the leak in their customer's bucket. 97% of customers churn silently leaving no clue of why they left with no feedback. So churn analysis is necessary to prevent revenue loss, lower customer acquisition costs and to increase up-selling and cross-selling opportunities.
How to calculate subscription churn?
To calculate subscription churn : #of customers that quit / total # of customers over a time period