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Quick-Churn or Late-Churn Customers: Which Are More Valuable for Marketers?

by Pini Yakuel  |  
March 5, 2015

For most online businesses, user acquisition is a challenging endeavor—one that is only getting more difficult. With growing competition for products or services, and rising advertising costs, marketers can no longer spend frivolously to acquire new users with no strategy in place to retain those hard-earned customers.

Many of today's savviest marketers are turning more of their attention to strategies that can help re-engage churned, or lapsed, customers.

The customer group of churned customers is a huge source of untapped potential, as they already have had prior communication with you and recognize the brand. Not only do those customers know who you are, but you also have valuable data about them.

But are all churned customers alike? Should marketers employ different strategies for re-targeting customers that churned in different ways?

We set out to answer these questions and more by analyzing data from across our network.

Quick-Churn vs. Late-Churn

To gain more insight of how marketers can unleash this potential, we decided to compare two different customer groups: "quick-churn" and "late-churn" customers.

For the purposes of our research, we defined quick-churn customers as those who interacted with the brand for a short period of time and quickly left (or churned after being "new" customers). Late-churn customers had a continuous interaction over a longer period with the brand before leaving (churned after being "active" customers).

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Pini Yakuel is the CEO and co-founder of Optimove, a data-driven retention automation software that empowers marketers in online businesses to plan, execute, and measure highly personalized campaigns.

LinkedIn: Pini Yakuel

Twitter: @pini_yakuel

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