Customer churn

What is customer churn?

Customer churn refers to the loss of customers who no longer use a company's products or services. This value is often measured as the churn rate. It shows the ratio of lost customers to the total number of customers within a certain period of time – for example, monthly or annually.

A high churn rate can indicate problems in customer service, product quality or general customer satisfaction and is a key early warning signal for many companies.

Why is customer churn relevant in the contact center?

The analysis of customer churn is particularly important in the contact center environment, as many direct interactions with customers take place here. Every contact can contribute to strengthening customer loyalty – or lead to termination if the experience is negative.

Companies use contact center data to identify signs of dissatisfaction at an early stage, for example through:

• Accumulation of complaints or escalated tickets

• Queries about termination or end of contract

• Negative ratings in conversations or feedback tools

How can customer churn be reduced?

Companies are increasingly relying on data-driven strategies to specifically avoid customer churn:

• Data analysis: historical behavioral data and interactions are evaluated to identify patterns.

• AI-supported prediction models: Machine learning algorithms predict which customers are particularly at risk of churning.

• Personalized customer care: Relevant offers, targeted win-back campaigns or individual service improvements increase satisfaction.