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Glossary

Customer churn

Metrics and measurement

Churn (and churn rate for the ratio that measures it) is the share of customers who stop buying or cancel within a period.

In these articles it is a cultural outcome before a commercial one: the most advanced platforms leave churn untouched where a customer culture is missing. Predictive models earn their keep by showing who is about to leave while there is still time to call.

An example

A company applies machine learning to its sales data to predict which customers are at risk of churning, and gets a list of names to call. The list is worth as much as the organisation receiving it: with someone owning the call it becomes a negotiation, otherwise the model has merely forecast a loss.

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