Churn rate, also known as customer churn is a crucial parameter for any business’s success.
It measures the rate at which your existing customers are dropping off your products.
We use this formula to calculate it:
Churn Rate = (Number of customers at the beginning of a period - Number of customers at the end of a period) / Number of customers at the beginning of a period
A quickly escalating churn rate is among the worst things that can happen to a new business. It can lead to:
Huge Revenue Loss
Massive Reputation Damage
Increased Customer Acquisition Cost
My client’s situation was also pretty similar…
Here’s the full case study of how I helped them identify at-risk customers and reduce their churn rate by 15%:
Challenge
A fast-growing tech healthcare company was facing its biggest challenge yet:
Escalating Churn Rate
Despite trying their best, they were unable to identify and intervene with at-risk customers before they dropped off their products.
The challenge was clear:
They needed a more sophisticated, data-driven approach to anticipate and manage customer churn.
Action
After we started working together, I started studying the already present systems and processes.
I got some crucial details and with their help, we started developing a predictive churn model.
This model integrated:
Customer behavior metrics + Purchase history + Engagement data
All into a single platform.
After implementation, this model was employed to generate risk scores for each customer, thereby enabling early interventions.
Result
The Salesforce Automation-driven predictive churn model had an immediate and profound impact.
In just one year of implementation, the client observed a 15% reduction in their churn rate.
Moreover, the predictive model successfully flagged 30% of customers who were at risk.
This allowed them to deploy targeted and proactive retention strategies, thus enhancing their customer relations and retention.
Overall, this project was really interesting.
I feel I became better at my job after delivering results for this client.
That’s it for this issue.
If your business needs massive changes and you’re ready for it, book a free consultation call with me: https://calendly.com/jordanqnelson/25min
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Thanks for reading.
Jordan
Thank you for the continued content. Just an observation I noticed several spelling errors in the article.
‘ thier,’ ‘immidate,’‘targetted ‘
I will start observing how to determine my client’s customer churn.