About Churn Analysis
Churn rate is the percentage of subscribers to a service that discontinue their subscription to that service in a given time period. In order for a company to expand its user base, the growth rate must exceed churn rate. Goals around churn analysis are to identify high and lower performing segments, such as customers that are most likely to discontinue in the near future, and to elicit actional insights into how to reduce overall churn.
The churn rate of a business is characterized by the percentage of customers or users that discontinue his or her subscription from the service in a given time period. Growth rate is the opposite of churn rate, and in order to spur growth it is essential to ensure growth stays ahead of churn. Accessing and utilizing churn rate to identify customers who are likely to discontinue with the business is the first step in promoting customer retention.
Understanding if or when customers are abandoning a product subscription is vital in identifying any holes within a company’s funnel or any other possible warning signs that could indicate a customer’s potential to abandon the product. By identifying these points and creating “go-to” actions for each of these potentially lost customers, such as new ads or targeted promotional codes, we can limit a company’s churn rate and continue to see growth rate rise.
Upon receiving a client’s customer data, 565 Media and our team of online marketing analysts will present any potential points of your funnel that could lead to an increases churn rate. From there, we work together with a client in order to develop a plan going forward that patches holes in the funnel with a specified course of action centered on retaining existing customers.