Gainsight Glossary

What Is Customer Churn Analysis

In order to build a sustainable SaaS business, companies need to focus their efforts on reducing customer churn. According to the authors of “Leading on the Edge of Chaos”, reducing customer churn by 5% can increase profits 25-125%. Therefore to reduce churn, most SaaS companies perform customer churn analysis. But what is customer churn analysis and what are its benefits?

Churn Analysis

Customer churn analysis refers to the customer attrition rate in a company. This analysis helps SaaS companies identify the cause of the churn and implement effective strategies for retention.

Gainsight understands the negative impact that churn rate can have on company profits. Named as the “2014 cool vendor for CRM sales” (by Gartner), Gainsight’s customer intelligence and retention process automation technology:

  • Gathers available customer behavior, transactions, demographics data and usage pattern
  • Converts structured and unstructured data/information into meaningful insights
  • Utilizes these insights to predict customers who are likely to churn
  • Identifies the causes for churn and works to resolve those issues
  • Engages with customers to foster relationships
  • Implements effective programs for customer retention

Statistics show that acquiring new customers can cost five times more than retaining existing customers. Gainsight performs customer churn analysis to reduce churn, control retention and improve performance.

For more information about customer churn analysis, visit

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