Churn Quiz

Which type of churn occurs when customers proactively decide to discontinue their relationship with a company?

• Involuntary Passive Churn

• Downgrade Churn

• Voluntary Active Churn

• Good Churn

Identify the formula for the customer churn rate.

• number of customers lost in a period/customer base in the beginning

• number of existing customers/number of customers lost in a period

• number of dissatisfied customers/number of satisfied customers

• number of satisfied customers/number of dissatisfied customers

An analyst compares two competitors: ABC with an annualized churn rate of 5% and XYZ with an annualized churn rate of 10%. What can the analyst infer regarding the number of customers who non-renewed?

• XYZ increased its customer base.

• ABC lost less customers.

• ABC lost more customers.

• The number of non-renewed customers is undetermined based on the given information.

What are industry standards in calculating the customer churn rate?

• daily, weekly and monthly

• weekly, monthly and yearly

• monthly, quarterly and yearly

• annually, quarterly and bi-annually

Churn prediction is a _ model.

• Classification

• Clustering

• Forecasting

• Outlier Detection

Which is the most suitable metric to evaluate your churn prediction model? (More than one correct options)

• Accuracy

• Precision

• Recall

• F1 score

What does "good churn" refer to?

• High churn rates indicating customer satisfaction

• Churn that generates new customer referrals

• Deliberate loss of unprofitable customers

• Churn caused by external factors

Which of the following is not a benefit of churn analysis

• Improved customer retention

• Enhanced customer satisfaction

• Increased revenue

• Reduced customer acquisition costs