Predicting Customer Churn
For any company to succeed they need to find ways and means to keep their customers happy to reduce customer churn. Predicting customer churn is a key challenge in helping to identify root causes, and improve overall churn. Customers are very aware today and do not make snap decisions when it comes to using products or services. Customer churn happens if they do not get what was promised or have a bad customer experience.
To retain customers who would otherwise leave your business, you must be able to:
- Predict customer churn in advance to take remedial action on time
- Have knowledge of customers that are likely to leave
- Identify which action will help retain the customer
Using Gainsight for Predicting Customer Churn
Gainsight’s customer success module analyzes the customer behavior to gain actionable insights with early-warning signs about their unhappiness and happiness. Based on answering some key questions about your customers’ you can predict customer churn. These include:
- Is the customer using the product and its features?
- What is their usage level (high or low)?
- What is the acquisition or churn rate?
- What is the customer’s Net Promoter Score (NPS)?
- Is the customer reference-able?
- Is the customer paying their bills on time or are they defaulting?
Gainsight uses an accurate approach to customer churn prediction based on customer lifetime value (CLV) for each customer. If the CLV is declining, it is warning that customer may be on the verge of churning. You need to take proactive measures to maximize the chances that the customer will remain a customer.
Collaborate with Gainsight to prevent churn and identify up-sell opportunities.