What is meant by churn prediction?
Churn Prediction is the method of predicting customers that are at risk of leaving your business so that some proactive steps of engagement can be taken to prevent such customers from leaving.
Why is it necessary to predict churn?
To predict the customers that are at risk of leaving the business before losing them and proactively indulge in engagement is very important.
When the business is about to lose some customers, it needs to bring in a few new customers to compensate for the loss.
The Cost of Acquiring a new customer = 5 * (The Cost of Retaining a customer)
How can we perform churn prediction?
Once the customer churn is rated for your business using the churn rate formula, customer data analytics combined with BI tools and Machine Learning can analyze customer churn, its reasons and also predict which customers are at risk of leaving. This way you will be able to step up to take remedial actions to prevent churn