Customer churn is when a customer decides to stop using services, content, or products from a company. As we have briefly discussed in Chapter 7, Exploratory Analysis for Customer Behavior, when we discussed customer analytics, it is much less expensive to retain existing customers than to acquire new customers, and the revenue from repeat customers is typically higher than that form new customers. In competitive industries, where a business faces many competitors, the cost of new customer acquisition is even higher, and retaining existing customers becomes more important for such businesses.
There are many reasons behind customers leaving a business. Some of the common reasons why customers churn are poor customer service, not finding enough value in the products or services, lack of communications, and lack of customer loyalty. The first step to...
