Predict Customer Churn
The Churn Prediction application classifies whether a customer has churned or not. For customers who haven’t churned, it predicts if a customer is expected to churn (expected to reduce or stop purchasing) and the churn timeframe (when the churn is expected to happen).
- Automated insight into at-risk users:
- Can provide visibility to stakeholders on where to focus resources to limit churn to the most at-risk users
- Allows business to segment at-risk user groups and build tailored retention efforts
- Early warning of potential revenue impacts:
- Predict impact on revenue of losing at-risk users within time period, allowing businesses to take preemptive actions
- Help business quantify the hidden costs of churn further
- Cost of acquiring new users
- Potential negative impact of brand reputation
- New user onboarding costs
This application uses your sales history that includes the sales order, status, customer address, currency, item, and payment method details to predict the churn. If the gap from today to the last purchase in days falls in the 90th percentile of all historical delays, the application identifies it as a churn automatically. You can manually specify the number of months that constitute a churn (months since last customer transaction date). If last transaction date is outside of this window, the application identifies it as a churn.
Ensure to activate the Sales functional area prior to activating this application.