Determining an Online Customer's Churn Value

No business wants to lose customers, but for most online retail businesses, nearly half of their customers will buy just once. Some repeat purchasers might also churn over a period of time. A subset of the metrics described in the above stages can help quantify the churn.

There are several statistical techniques for using the customer information captured to predict the chance of a customer churning. It might be a good practice to assess the exit from time to time. It gives a fair idea of the degree to which you should worry about your customers. It helps you to chalk out a plan and do a monetary estimate to learn which set of customers you should spend the maximum on for retention, as well as to strategize retargeting efforts by asking which offers/promotions will pull customers away from the exit -- or propel newer customers to engage more, and so on. Being able to gauge this behavior of the customer is supplementary in arriving at the customers' value. This can be seen in the above illustration as the Exit values. This is our fifth and final dimension.

Quelle: crmbuyer.com