Question 4. Customer acquisition analytics and customer churn analytics go hand in hand. Explain what is meant by each and why this is important. Give examples. (Guidance: aim at no more than 400 words in your answer)

4) For organizations like credit card companies, cable service providers, SASS, and telecommunication companies throughout the world, customer churn is one of the most important and challenging concerns. Client churn indicators can help firms increase customer retention even though they are not the most entertaining to look at. By classifying them into various groups, we can categories customer churn, also referred to as customer attrition. When consumers choose not to renew their expiring contracts, this is known as contractual churn and it affects companies like cable providers and SAAS service providers. Contrarily, voluntary churn occurs when a client chooses to discontinue their current service. This can happen with businesses like those who offer prepaid telephones and streaming subscription services. Consumers occasionally decide not to complete a potential purchase after starting it. These situations fall under the category of non-contractual churn, which is relevant to companies that rely on brick-and-mortar storefronts, internet retailers, or online lending services. Furthermore, there is involuntary churn, which occurs when a consumer is unable to pay their credit card account and leaves the credit card business. Some typical causes of customer churn include not using the product, receiving poor service, and finding a better deal elsewhere. The causes of customer churn can vary and require subject expertise to characterize appropriately. Regardless of the justification that may vary by industry, one principle holds true across all industries: acquiring new consumers is more expensive than keeping existing ones. The company's operating expenses and marketing expenditures are directly impacted by this. Stakeholders are putting more time and effort into determining the causes within their organization’s, how they can precisely predict the kinds of current customers who may stop doing business with them, and what they can do to reduce customer churn as a result of the significant importance of customer churn within a business.