What is customer churn analysis?

Customer churn analysis involves measuring and understanding the rate at which customers stop using a company's products or services. It helps you pinpoint why customers leave, allowing you to take proactive steps to improve retention.

By examining churn, you can identify patterns in customer behavior. For example, you might notice that users who don't engage with a feature within the first week are more likely to churn. Recognizing these patterns helps you focus your efforts where they matter most.

Examples of customer churn analysis

SaaS companies

A software company notices high churn among users who skip onboarding. They introduce a guided tutorial, reducing churn by 20%.

E-commerce

An online retailer tracks purchase frequency. Customers not buying within the first month are at high churn risk. They launch a loyalty program to encourage repeat purchases.

Telecommunications

A telecom provider analyzes call and support data. Frequent support interactions signal a higher churn risk. They enhance self-service options, cutting churn by 15%.