Churn means that your customers cancel your service, or stop spending money on your site or app. Churn is the most common Data Science problem in the world. That’s because nowadays every company has a churn problem! All companies want to keep their customers coming back. Top 3 Challenges for Data Science with Churn Most data scientists have fit a churn model in a class or bootcamp. But really fighting churn is much harder than…
Customer lifetime value (CLV) is the foundation of recurring revenue business models: you recoup the costs and profit from a customer over their lifetime using your product, not from a single transaction. CLV is important because you need to make sure that the costs you spend to acquire and maintain your customers are worth it! If you calculate CLV correctly, you can use it strategically to evaluate the ROI of different acquisition and retention tactics.…
Top 3 Lessons from Zuora’s new update to the Subscription Economy Index which I created: 1. Subscription companies are Killing It. Subscription sales expanded at a record 24% for the year ending in March. In comparison, traditional economy sales growing in the low single digits. 2. But the laws of physics still apply. In Q2 the largest subscription companies we tracked ramped up subscriber acquisition only to see Revenue Per Account fall flat, leading to…