Churn & Retention Analytics
Learn how analysts identify customer loss, measure retention, compare cohorts, and turn churn signals into business decisions.
Concept 1 of 8
Retention vs Churn
Understand the two sides of customer continuity.
The idea
Retention measures the customers who continue with a business. Churn measures the customers who leave during a defined period. They describe the same customer movement from opposite perspectives.
Business meaning
A business cannot evaluate customer health by looking only at new customers. It must also understand how many existing customers remain.
Customer health
Retention ↔ Churn
Activity
Think like a business analyst
A subscription business starts the month with 1,000 customers. During the month, 80 customers leave. Which metric should the analyst focus on to describe the customers who stayed?
Churn & Retention Analytics — Business Analytics
Learn customer retention, churn rate, retention curves, cohort analysis, customer segmentation, and customer-value thinking through interactive business analytics examples.
Frequently Asked Questions
What is customer churn?
Customer churn describes customers who stop using or buying from a business during a defined period.
What is customer retention?
Customer retention describes the ability of a business to keep its existing customers over time.
Why use cohort analysis?
Cohort analysis separates customers according to when they started, making changes in retention behavior easier to identify.
Why does retention matter for business analytics?
Retention affects the stability of the customer base and can influence the economics of customer relationships.