Overview of customer churn
I have spent almost 15 years in the telecom and financial industry with some of the major telecom and financial customers, and if there is one business case that makes the business worried it is Customer Churn. So what is customer churn?
According to Wikipedia, Customer attrition, also known as customer churn, customer turnover, or customer defection, is the loss of clients or customers (http://bit.ly/2kfTHXF).
Customer churn is such a nightmarish problem for major vendors because:
- Churn affects your customer base and hence profitability and baseline
- Churn impacts your overall business image
- Churn hurts your company's goodwill and market sentiment
- Churn hurts your total addressable market
- Churn gives your competitors a psychological and economic advantage
- Churn affects your overall employee morale
Figure 10.1: Customer churn via http://bit.ly/2iUScln
While you can never reduce the churn rate to zero, you essentially want to:
- Identify who is most likely to churn
- Identify...
