Churn Prediction assigns each contact to one of six segments based on their likelihood of churning and the predicted date when they may stop making purchases.
These segments help you identify which contacts to keep engaged, which ones to monitor, and which ones require action through churn prevention or win-back campaigns.
How the segments are defined
Each segment is determined by combining two pieces of information:
- The churn probability, which indicates how likely the contact is to churn.
- The predicted churn date, which estimates when the contact is likely to churn.
The segments are ordered by increasing level of risk. As a contact moves toward the later segments, their risk of churn increases. If they move back toward the earlier segments, they are showing more positive signs.
The six churn segments
- Loyal customers: contacts with a low risk of churn, offering opportunities to strengthen loyalty and increase customer value.
- Stable customers: contacts with a moderate risk of churn and no signs of imminent churn.
- Customers to monitor: contacts with a moderate risk of churn but a predicted churn date in the near future.
- At risk customers: contacts with a high risk of churn, while there is still time to re-engage them.
- Customers with imminent churn: contacts with a high risk of churn and a predicted churn date approaching soon.
- Churned customers (lost): contacts whose predicted churn date has already passed without any new purchases.