The market is increasingly competitive, there are more companies in the various business areas, therefore, companies have more and more competition. Attracting and retaining customers always comes at a cost for companies, but this is the only way to ensure the survival of the business.
To retain current customers, it is necessary to know which ones are at risk of leaving and what are the reasons that lead them to abandon. Only in this way will you be able to provide them with new experiences that meet their expectations and thus avoid their loss.
To measure the number of customers that enter and leave a company in a given period of time is called the Churn rate or, simply, Churn. For the reasons mentioned above, Churn management is one of the main tasks of companies’ marketing areas.
To manage the Churn of your business, you need to identify customers at risk (customers most likely to leave the company). For this there are different statistical techniques at your disposal: