About the Churn Risk Calculator
What is Churn Risk Scoring?
Churn risk scoring is a proactive approach to identify which customers are most likely to churn, or stop using your service. Instead of waiting for customers to leave, this model uses key behavioral and demographic data to assign a risk score. This allows you to intervene with targeted retention strategies before it's too late. It's a fundamental tool for any business serious about reducing its customer churn rate.
How to Use This Tool
This calculator provides a simplified model for assessing churn risk. Input the following data points for an individual customer:
- Customer Tenure (Months): How long has the customer been with you? Newer customers often have a higher churn risk.
- Usage Frequency: How often do they engage with your product? A drop in usage is a classic leading indicator of churn.
- Satisfaction Score (1-5): What was their rating in the last satisfaction survey? Low scores are a direct signal of dissatisfaction that can lead to churn.
- Support Tickets: How many support tickets have they filed recently? A high number can indicate either frustration with the product or high engagement.
Benefits of Predicting Customer Churn
- Proactive Intervention: Engage at-risk customers with special offers, support, or training before they decide to churn.
- Efficient Resource Allocation: Focus your retention budget and team efforts on the customers who are most likely to leave.
- Improve Customer Experience: Understanding the drivers of churn helps you identify and fix common pain points in your product or service.
- Reduce Overall Churn Rate: By saving individual customers, you directly improve your overall customer retention and churn metrics, which also boosts Customer Lifetime Value.