What is churn in SAP CRM-ANA - CRM Analytics?

SAP Term: churn

• Component: CRM-ANA

• Component Name: CRM Analytics

• Description: When a customer ceases to do business with the company, the customer is considered to have "churned".

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• Key Concepts: 
  Churn is a term used in customer relationship management (CRM) analytics to describe the rate at which customers stop doing business with a company. It is calculated by dividing the number of customers who have left the company in a given period of time by the total number of customers at the beginning of that period. 
  
  How to use it: 
  In CRM-ANA CRM Analytics, churn can be used to measure customer loyalty and identify areas where customer service or product offerings may need to be improved. It can also be used to identify trends in customer behavior and predict future customer attrition. 
  
  Tips & Tricks: 
  When calculating churn, it is important to consider factors such as customer lifetime value, customer segmentation, and customer satisfaction. Additionally, it is important to track churn over time in order to identify any changes in customer behavior or trends. 
  
  Related Information: 
  Churn is closely related to other metrics such as customer retention rate, customer lifetime value, and customer satisfaction. Additionally, it is often used in conjunction with other analytics tools such as predictive analytics and segmentation analysis.