Using Predictive Analytics to reduce Churn for your business can help you see a drastic increase in revenue

What exactly is ‘Churn’?

Churn, in it’s simplest terms, refers to the number of customers who cease to interact with a company and their corresponding products during a given time period. The metrics which are used to measure churn vary between company to company, however, one statistic remains the same; Churn equates to a loss in revenue for businesses. Not only do you lose the potential recurring revenue from customers simply using your product, you will also incur fees from your marketing department who will try to replace them with new ones. Depending on which study you read, acquiring a new customer is five-25 times more expensive than retaining a new one, therefore, reducing Churn is a key goal for every online business.

What impact does Churn rate have on your business?

When discussing Churn it is imperative to distinguish that, depending on the type of business you run, churn can affect your revenue in markedly different ways. Traditionally, Churn has been used as a metric by businesses which employ a recurring revenue model (e.g. TV, phone and magazine subscriptions). For businesses which utilise a recurring revenue model the churn event is very clear, for example, when a consumer decides they no longer need their subscription to a monthly magazine that customer can only be viewed as churned. It is important to note that Churn is not limited to businesses with these revenue models, it is also prevalent in E-commerce businesses even though it is much harder to distinguish the churn event. So, irrespective of the type of revenue model you use, the business you run will benefit by reducing churn.

Does Churn apply to companies with a Freemium business model?

It is important to first discuss what the ever present ‘Freemium‘ model actually involves; this business model involves giving away your product for free to a large group of users and garnering revenue from a smaller group of your users who purchase premium products. For example, mobile apps usually acquire revenue through in-app purchases such as extra lives, power-ups etc. and in-app advertisements. The metrics for businesses which employ a Freemium model to generate revenue can sometimes be tricky to configure. Thankfully, analytics companies like can tailor your Churn rate to maximise the effectiveness of your product. Freemium businesses benefit from their users engaging with their product for longer periods – the longer people are using your product the more likely they are to purchase premium products and the more likely you will be able to monetise advertisements. In light of this, it is essential that users are engaging with the product as much as possible. As with companies that employ a recurring revenue model, those who use a Freemium model will benefit greatly from a reduction in churn. However, one important aspect which Freemium businesses need to take in to consideration is the cost of their efforts to retain customers. As they give their core product away for free they must consider if the resources they use to prevent customers from churning are targeting users who actually purchase their premium products.

Is it possible to predict if a user is likely to Churn?

In short, Yes! Analytics companies like present businesses with the unique opportunity to detect when a user is at high risk of churning. Not only can we predict when your users are about to churn, we also alert you whilst you can still take action to prevent them from churning. The ability to detect when a user will churn stems from predictive analytics; the measure of an individual to predict their future behaviour based upon prior interactions. Of course, said analytics products also allow users to group individuals into segments and target key groups of potential churners… but more on this later! will alert you to users which are about to Churn!

What needs to be done once we know a user is likely to Churn?

It is indisputable that the ability to understand when one of your users will potentially churn is vital for maintaining a successful business, however, the real benefits will be seen when this information is used in conjunction with clever marketing. Ensuring that the most effective means of action is conducted to combat potential churners can prove to be a difficult task when you are working in isolation. This is where comes in. We have created a product which provides users with the capability to employ targeted marketing techniques. In simplified terms, our product provides businesses with an automated marketing analyst which utilises the data from our predictive analytics and in turn enables you to target users which have a high probability of churning with effective marketing techniques.

What is the importance of using targeted marketing techniques?

It is essential to remember that your product’s users are real people and to understand that each user is different from the other. Building on the information which can provide with their predictive analytics tool, a business would then be able to cater their marketing efforts towards individual users on a personal level. One tactic which can allow your business to employ effective and efficient marketing tactics is segmentation. Segmentation allows your marketers to group together users based on various parameters such as behaviour, age or sex and allows them to perform marketing actions accordingly. For example, if you have a mobile app you could send a push notification to your users who are about to churn alerting them that you have added some new features to your product. Employing clever marketing techniques as such will re-engage users with your product and in turn decrease your churn rate. Clever segmentation is automated by to ensure that you target the right users with the right content. Grouping together users in this fashion not only increases ease of use for your marketers but it also speeds up the time it takes to reach out to users who are about to churn which is vital in your retention efforts.

How can help your business decrease Churn?

Churn, as we now know, is a business decelerator, so employing conscious efforts to decrease it will improve your revenue overall.’s approach utilises cutting edge predictive analytics technology to identify users which are likely to churn and alerts your marketers whilst you can still make efforts to retain them. Not only does predict users with a high probability of churning, we also segment users into easily targetable groups and provide actionable insights which allow your marketers to seamlessly engage with your product’s users. Adding to the effectiveness of your marketing campaigns, we also analyse the degree of retention which your previous engagement obtained and automatically determine the next steps to ensure you achieve maximum degree of effectiveness. Our team of developers and data scientists have created a product which boasts cutting edge technology, easily integrated and extremely simple to use.

ampfelmann-2 can help your business reduce Churn!

Decrease Churn, Increase Revenue!

Our approach involves re-engaging your ‘on the fence’ users to decrease churn with intelligent targeted marketing campaigns. One of our customers who have seen great success is Zoobe, who we helped to increase day-15 retention by 64% with a segmented push notification campaign. Get in touch if you would like to learn more about and the way we can significantly reduce churn with our predictive analytics product and increase your revenue!