Accordingly for a customer churn prediction

If you aren t it s still very likely that this data still holds more true than false and can give you the right direction Churn vs MRR Churn only loosely correlates with MRR Monthly Recurring Revenue Theoretically it would make sense that the more money a company makes the less the churn rate becomes due to higher expertise better infrastructure economies of scale etc As it appears this is not the case Churn vs ARPU Higher ARPU Average Revenue Per User correlates to less churn There is a strong correlation between a higher ARPU and lower churn rates.

Older company correlates to less

Companies with four figure ARPU have nearly a drop in churn compared to those with single or double digit ARPU Source This correlation makes Canada Phone Number List sense because a high ARPU usually means a high ticket product or service And at higher tickets companies usually equip a sales team and longer contracts among other factors all of which help reduce churn Churn vs VC Funding Churn higher with funding.

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Churn vs Age  churn

Companies that have been fund typically have around higher churn rates than the bootstrapp ones. The reason for this is not entirely. Clear but it s speculat  that having money in the bank means that the marketing team may focus more on top of the WS Numbers funnel growth instead of customer retention. For this particular conclusion we shouldn t confuse correlation with causation. The older the company the lower the churn because low churn is one of the main reasons the company managed to stay alive for so long in the first place Customer. Churn Prediction Models The best way to predict anything is to create a model you also need a model a churn prediction model.

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