Introducing Zia's Customer Churn Prediction
Dear All,
Hope you are well!
We have an exciting new feature added to Zia's Prediction capabilities. Let's learn more!
Businesses, even after spending a lot of money on customer acquisition, sometimes struggle to retain those acquired customers. While an acceptable churn rate falls between 5% to 7%, a 2020 study reported by Statista reveals the actual customer churn rates observed in different industries.
Although there could be a myriad of reasons as to why customers ghost a business, churn is often identified only after it has happened. Retrospectively identifying churn incurs more loss than the revenue gained from new customer acquisitions. For an expanding business, it's important to be vigilant and spot churn as it happens to avoid detrimental losses. On that note, Zoho CRM is pleased to introduce Churn Prediction by Zia—a real-time prediction of customer- and subscription-specific churn.
Zia's churn prediction
Churn prediction is Zia's ability to identify churn patterns in your customer records and predict their probability to churn out of your business.
Primarily, it displays churn score to help you assess the churn probability. However, if the revenue model of your business is subscription-based, Zia will also display which product/ service are your customers churning from.
How does Zia predict customer churn?
Churning is your customer behavior and to capture as and when it occurs, Zia requires to know who your customers are and what their payment model is, to understand the nature of your business. And, to further classify them as active and churned, it needs to know the characteristics of active customer and churned customer.
Once Zia has learned, it will compare and correlate the customer record with the guidelines you configured. Furthermore, it will look into the historical transactions, observe for patterns, and alert you for prospective churn. This way, you can be aware of any shortcomings and tend to them at once.
How can I use these predictions?
Once Zia has computed the churn predictions, it will display the churn score as a widget inside your record. The higher the score, the higher is the probability of that customer to churn.
Also, to let you act upon the prediction score, Zia will display two read-only custom fields on the record detail page for a subscription-based revenue model.
- Churn score: The score displays the probability that the record will churn.
- Churn prediction: The prediction field displays the active subscription associated with the customer record.
For the non subscription-based revenue model, only the churn score will be displayed on the record detail page.
Based on these fields, you can create automations, generate reports, classify records using custom views, and sort records using advanced filters.
Therefore, with Zia's customer churn prediction, you can achieve the following:
- Assess and prepare for the revenue impact
- Recondition and streamline your business processes
- Come up with novel customer retention strategies
- Enhance post-sales customer engagement
- Attract and recover customers that are withdrawing from your business
How will I know the efficacy of these churn predictions?
Just as Zia refers to the churn configuration and historical data to come up with a churn prediction score, Zia also rates its model's accuracy between 1% and 100%, as a way of indicating how reliable these scores are.
Here's the range for your reference:
Score above 80% | Zia will render excellent predictions |
Score between 60% to 80% | Zia will deliver average predictions |
Score below 60% | Zia's predictions will be poor |
If the model accuracy is poor, Zia will automatically optimize its analysis by retraining data sets every 15 days.
What are the prerequisites/limitations?
- Zia will need a minimum of 200 records consisting of 75 active records and 75 churned records to start predicting.
- Zia Churn Prediction is available only for organizations in Enterprise and Ultimate editions with 20 user licenses and more, in US, EU, IN, CN, and AU DCs.
- Churn predictions are available in all languages.
That's it for Zia's Churn Prediction—for now. We hope these predictions will help you mitigate your customer churn as you scale.
For more information about Zia's Churn Prediction, kindly refer to our help doc.
Thanks and have a good one!
Kind regards,
Saranya Balasubramanian
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