Customer Churn Solution

To sustain your business, you need customers to purchase your products and services. Understanding when a customer is at risk to cease his or her relationship with your company could be crucial in account management and financial planning.

Churn rate, when applied to a customer base, refers to the proportion of contractual customers or subscribers who leave a supplier during a given time period. It is a possible indicator of customer dissatisfaction, cheaper and/or better offers from the competition, more successful sales and/or marketing by the competition, or reasons having to do with the customer life cycle.

With BlueGranite's solution offering, we can help you predict which customers are likely to churn given historical information from previous customers. This will give you a more targeted approach at customer retention and relationship management.

The Value of Existing Customers

	HIGH RETENTION RATES A 2% increase in customer retention is the same as decreasing costs by 10% [2]
	SELLING WITH EASE The probability of selling to an existing customer is 60 to 70%, selling to a new prospect is 5 to 20% [3]
	INCREASED SALES OVER TIME Repeat customers spend 67% more in months 31 to 36 than in their first 6 months [4]
	FREE VALUED ADVERTISING Repeat customers refer more people to businesses through word-of-month [4]
	COMPOUND INVESTMENT Referred customers can spend 150 to 175% more than the people that refer them [4]

Increasing customer retention by 5% can increase profits by 25%-95%! ^[1]

¹Harvard Business Review - https://hbr.org/2014/10/the-value-of-keeping-the-right-customers | ²"Leading on the Edge of Chaos" by Emmett C Murphy | ³”Marketing Metrics” by Paul Farris, Neil Bendle, Phillip Pfeifer, and David Reibstein | ⁴Bain & Company - http://www.bain.com/publications/articles/the-value-of-online-customer-loyalty-and-how-you-can-capture-it.aspx