Customer retention analysis is the application of statistics in order to understand how long customers are retained before churning out and to identify trends in customer retention. This type of analysis discerns how long customers usually stick around, whether or not seasonality affects customer retention, and discovers behaviors and factors that differentiate retained customers from churned customers.
Customer retention analysis is important for your company because it helps you understand which personas have higher retention rates and discern which features impact retention. This provides actionable insights that can help you make more effective product and marketing decisions.
It can be difficult for a product or sales team to know how well a product is actually performing with the target audience. They may think that features and messaging is on brand and clear because acquisition numbers are growing. However, just because new customers are purchasing a product does not necessarily mean customers like the product or service enough to stick around.
That is where customer retention analytics comes in. Every company needs data in order to make effective business and marketing decisions. Machine learning makes this easier than it has ever been before, which is great news for companies that wish to leverage this data.