Comprehensive Guide
to Customer Churn
You can’t manage customer churn, unless you measure it. Use the articles below to better understand your churn and come upwith ways to reduce it.
Define Customer Churn
What is customer churn? How is it different from attrition? How do you calculate the churn rate? Why calculating churn rate correctly is important?
These concepts seem straightforward, but when you run into practical implementation, things get complicated.
The article goes into the detail of customer churn basics.
Analyze Churn
In this article, I show how to identify the data you need for calculating churn rates, create your datasets correctly, and find variables that correlate and possibly drive your churn.
The article goes in depth on the customer in and out dynamics, and how it is reflected in your churn numbers.
Practice in Excel
Now that you know the theory, it’s time to practice!
In this article, I walk you through the process of analyzing churn using a Kaggle telecom churn dataset. You will see how the data is structured and how you can use Pivot Tables to calculate churn rates on the fly.
I share my tips and tricks to make your analysis go fast and smooth.
Pretict Churn the Right Way
Data is confusing.
Before embarking on a churn prediction exersize, read about structuring the data in ways that will help you product the results that make sense and the models that can be used for churn prediction.
Create a Predictive Model
After you figured out which variables correlate with churn, it is time to create a churn prediction model, aka churn propensity model.
In this article, I will explain how predicitve models combine inputs to produce the likelihood of a customer to churn in the next period of time.
Make Your Churn Prediction Models a Success
Make sure your predicitve model produces the results that are not outdated, trivial, or plain wrong. Learn how to use churn propensity to improve your analysis and to calculate lifetime value for indivudial subscribers and prospects.
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Use Experiments to Reduce Churn
Understanding who is most likely to churn is different from being able to reduce this segment’s churn.
In this article I will show you how to use experiments to identify effective churn reduction programs and segments that these programs work best for.
