Customer churn is the percentage of customers who disengage with a brand during a specified period. It is a retention signal: a rising churn rate raises the question of where customers are losing interest and what might bring them back. section 2.3.3
Use churn alongside other customer signals rather than treating the percentage as an explanation on its own:
- Compare churn with engagement metrics to look for behavior that may signal dissatisfaction, then target retention efforts. section 2.3.3
- Use first-party data to understand changing needs and keep the customer relationship useful beyond an initial purchase. section 1.3.2
Re-engaging quiet customers
A consumer electronics brand used purchase history and website activity to identify customers who had not purchased in over 18 months. It then sent personalized emails featuring related products and a limited-time discount. This is a response to possible churn, not a calculation of the churn rate. section 1.6.2
Measurement and response should remain distinct. Churn rate shows how much disengagement is occurring; customer data can help reveal patterns and guide an appropriate response. When analyzing that data, protect customer privacy. section 2.3.3 section 1.6.2
