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» Economics » Marketing » Topics begins with C » Churn management

Page modified: Tuesday, July 12, 2011 22:21:12

The Churn management is a technical term from "CHANGEs" and "turn" and designates the attempt to avoid customer drifts. This concerns in particular industries, in which due to contractual obligations the customer a certain time is bound to an enterprise and could at expiration of the period the offerer change (e.g. With the Churn management drift-endangered customers are to be addressed in time before contract discharge and convinced from remaining to.

It is important in the apron to determine first the probability of drift as well as the customer value. Thus the efforts are undertaken only at profitable and profitable customers. Possibly it can be better for an enterprise to facilitate for a unprofitablen customer the drift. There are several methods for customer evaluation, one of it is for example the Customer Lifetime VALUE.

There are three kinds of Churn:

- active Churn: by the customer one initiates and can be prevented by possibilities of action of direct marketing.

- passive Churn: by the enterprise and the possibilities of action of the enterprise are here restrictions, e.g. reminders are initiated

- rotationale Churn: also initiated by the customer, by quitting before expiration of the contractual obligation "as a precaution" to change without having the direct intention, to a competitor.

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