September 3, 2017

Forecasting Churn

In most Sales and Marketing-led businesses, there are questions about the real factors that affect sales performance.

To what extent is length of relationship a factor of good customer service, or lower prices?

Is there a relationship between the amount we spend on advertising, and either the quality or quantity of customers that result?

What are the real factors that affect our ability to cross-sell from one product to another

What are the factors that affect customer churn, and how can we identify the right warning signs?

There are an almost infinite number of ‘Cause and Effect’ possibilities that affect a business. There are analytical tools that can help you to get a much clearer understanding of your business drivers, to help you find the right answers.


A business with 5 product lines that appear to be complimentary, and up to sixteen measurable variables that could have an impact on revenue

How do we identify the real causal relationships and the best opportunities?


Chaid and Regression were used to identify the real dependencies, and quantify the the extent of each ‘relationship’.

As a result, the client was able to highlight a threat to the length of customer relationships that came partly from the quality of individual Reseller performance, and partly from a change in available technology. The churn problem was partially solveable.