Churn prevention
Also called: Churn prevention software, Retention decisioning
Churn prevention is the practice of identifying customers likely to leave and choosing the intervention, if any, that retains the most revenue net of its cost. Churn prevention software scores risk, attributes the churn reason, prices each available response, and measures retained revenue against a control group.
Why it matters for ARPU
Save rate is easy to inflate by discounting customers who were never leaving. Markin judges churn prevention on incremental revenue retained net of intervention cost, read against a holdout.
Related terms
Churn predictionChurn prediction estimates the probability that a given customer will stop paying within a defined horizon, using behavioural, transactional and service signals.Churn rateChurn rate is the share of customers, or of revenue, lost in a period.Save offerA save offer is an incentive presented to a customer who is about to leave: a discount, a pause, a plan downgrade or a service remedy.Time to churnTime to churn is the expected remaining tenure of a customer, derived from a survival model rather than a binary risk score.Holdout groupA holdout is a randomly selected set of customers deliberately excluded from an action, kept as the counterfactual.