Fighting Churn with Data

5 Understanding churn and behavior with metrics

This chapter covers

• Showing how churn relates to metrics using cohort analysis
• Summarizing the range of customer behaviors with dataset statistics
• Converting metrics from their normal scale to scores
• Removing invalid observations from a cohort analysis
• Defining customer segments based on metrics and churn

If you need to use statistics to understand your experiment, then you ought to have done a better experiment.

—Ernest Rutherford, Nobel Prize in Chemistry, 1908, known as “The Father of Nuclear Physics” for his discovery of radioactive decay

It’s time to do what you came here for: understand why your customers are churning and what keeps them engaged. Although it took a while, the dataset you ...