Churn Analysis – What is it?
In the iGaming sector, there is no greater metric than tracking your customer churn rate. With so much competition for patronage, and so many enticing and highly competitive offers to attract shoppers, customer churn analysis is an essential tool in iGaming.
Not only does customer churn analysis help you to keep track of how many of your customers are leaving for greener pastures, it also helps you to evaluate daily, weekly or monthly churn dynamics.
In this quick guide, we shed light on how customer churn analysis works, and how you can use it to stem the tide of churn.
Churn Analysis – What is it?
Essentially, churn analysis is the careful examination and evaluation of a company or platform’s customer loss rate. This is also known as the customer attrition rate, and the goal of the analysis is to ultimately reduce these losses. This includes an evaluation of the services, features or product that the customer subscribed to or bought over a given period.
Benefits of Customer Churn Analysis
The data gleaned from in-depth customer churn analysis can be useful in a number of ways.
Redefining the customer experience: One of the main reasons why some companies or platforms will experience a higher churn rate, has to do with unhappy customers. Customer churn analysis can help to pinpoint areas where customers were unhappy, either with the services rendered, the product itself, or the overall user experience. Analysing this metric will enable the company to redefine its user experience, or improve its products and/or services.
Boosting profits: Customer churn analysis can help to boost your profits by providing useful insights into how to retain customers. Studies have shown that it can be up to seven times more costly to acquire new customers, than it is to sell to existing ones. Therefore, understanding your churn rate can help you to retain customers, thereby boosting your profits. In fact, a customer retention of at least 5% can lead to profit boosts by as much as 25%.
Find out more about Player Reactivation in our articles section or get in touch with Andrew Foster, Director of our B2B team, andrew.foster@enteractive.se.
