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Churn Rate Analysis
The study of the rate at which customers stop interacting with a brand or product, helping to identify areas for improvement in the marketing mix.
Implications
The assessment of customer churn rates over time, often involving the identification of patterns, causes, and impacts of churn, used to develop strategies for improving customer retention and reducing turnover.
Example
Example: A telecommunications company conducts churn rate analysis to understand why customers are leaving for competitors, finding that high churn rates are linked to poor customer service.
Related Terms
Different from churn measurement, which simply calculates the rate, churn rate analysis digs deeper into the reasons and patterns behind the churn, helping to develop more targeted retention strategies.
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