Churn and retention 2021 to 2024

Which accounts were leaving, and which losses were worth fixing

Two scores for two questions: which business customers were at risk of leaving, and which points of customer drop-off carried enough revenue to be worth working.

Data Analyst, Customer Acquisition, AUTO1 Group

Impact

Churn risk became a ranked outreach priority for the commercial team. Every drop-off point carried a quantified revenue upside, which is what identified the highest-impact retention opportunities.

Where the base drained across the customer relationship share still active (illustrative)
still active time as a customer
Illustrative shape, since the live analysis ran on AUTO1's customer data. What the real work established is that drop-off concentrated at identifiable points in the relationship, which is what let a revenue figure be attached to each one.
Retention opportunities, ranked by the revenue upside behind them relative revenue upside
  • Top drop-off point by revenue
    100
  • Second by revenue
    71
  • Third by revenue
    44
  • Fourth by revenue
    26
The magnitudes and the number of points shown here are illustrative, and the bars are labelled by rank rather than by which stage of the relationship each one was. What the work established is that each drop-off point carried a revenue figure, so the opportunities could be ordered by size.
Show the data table
Retention opportunities, ranked by the revenue upside behind them: ranked.
CategoryValue (relative revenue upside)Note
Top drop-off point by revenue100The highest-impact retention opportunity, which is what the revenue figure was there to identify.
Second by revenue71
Third by revenue44
Fourth by revenue26
Context

AUTO1's commercial team worked a large base of business customers with finite outreach capacity. Retention needs two things a customer list does not carry on its own: which accounts are at risk of leaving, and which points of customer drop-off have enough revenue behind them to be worth acting on.

What I did
  • I built the churn-risk score that identified which business customers were at risk of leaving.
  • I kept it separate from the value score, because who is worth keeping and who is leaving are different questions.
  • I analysed customer drop-off patterns to find where in the customer relationship the base was being lost.
  • I quantified the revenue upside sitting behind those drop-off points, which is what made the retention opportunities rankable by size rather than only nameable.
  • The commercial team used both scores to prioritise its outreach.
Outcome

Outreach was prioritised against churn risk rather than spread across the base. Each retention opportunity carried a revenue figure, so the highest-impact ones could be identified as the highest-impact ones.

Without this work

Retention effort spreads evenly across a base where the losses are not evenly sized, and the largest recoverable losses get the same attention as the smallest.

The full story

A business customer never resigns. The account just stops buying, which makes churn a measurement problem before it is a retention problem.

Two questions sit inside it, and I answered them with two separate numbers on purpose. The value score said which accounts were worth keeping. The churn-risk score said which ones were at risk of leaving. Blended into one figure they hide which of the two is driving a call, and the commercial team working the outreach needed to know which it was.

A score names who. It does not locate where. So the second piece was reading customer drop-off as a pattern rather than as a single event, and asking at which points in the relationship the base was actually being lost. That turns churn from one number into a set of specific places to look.

The last piece is the one that made the set usable. Each of those drop-off points had revenue sitting behind it, so I quantified the upside at each one. Without that figure, a list of places the base drains is a list of everything, all of it plausible and none of it ordered. With it, the highest-impact retention opportunities are simply the ones carrying the largest number, which is something a commercial team can prioritise against.

Ranking a large population under a hard capacity constraint, and putting a figure on a decision before asking anyone to make it, are the habits the fraud work later ran on.

  • Churn
  • Retention
  • Business customers
  • Revenue analytics
  • Customer scoring