July 19, 2017 11:51 pm

What is Churn Analysis?

Customer churn analysis helps you identify customers who are likely to discontinue patronage, with a focus on higher value customers, and determine what actions typically preceding a lost customer or sale.

How Churn influence Companies’ revenue?

It is important to track each of these separately and better to have visual system which will help to track Churn in real time and adopt Customer Retention Strategy accordingly.

Example of dashboard for revenue components tracking:

Churn Solution and Customer Retention Strategy

Once the company knows which customers are more likely to churn Customer Retention Strategy can be optimized to turn positive Churn into Negative Churn.

Influence of Negative and Positive Churn to Company revenue.

How to Achieve Negative Churn

1. Identify in time which clients are more likely to churn

2. Identify the reasons for churn

3. Find correlation between factors which are causing positive churn and factors which are causing negative churn

4. Identify True Customer Lifetime Value

5. Targeted retention campaigns, aimed at preventing high value, high risk clients from churning

6. Based on churn analyses and churn predictions expand revenue from current products –Up-sell customers to a more highly featured version of your product

7. Cross-sell customers to purchase additional products or services

how to achieve negative churn

The unique value proposition of the OLSPS Analytics Churn Solution

OLSPS Analytics Churn Solution is deployed on our OLSOLV deployment platform, which takes the form of an in-browser dashboard:

Save TimeOur OLSOLV platform cuts down the implementation time of a Scorecard Solution by as much as 75%
Excellent analytical expertiseWhen deployed on our OLSOLV platform, the OLSPS Analytics Scorecard Solution wraps up years of expert churn model development into a simple, user friendly dashboard – no data analysts required.
Cost EffectiveBoth OLSOLV and the OLSPS Scorecard Solution are developed in-house, meaning that OLSPS Analytics offers a Scorecard Solution at a significantly reduced price!
High ROIThere is a high return on investment when implementing a Scorecard Solution.The OLSPS Scorecard Solution on OLSOLV delivers very powerful management information in terms of risk and the optimisation your client base.
Affordable to any business sizeThe ease of use and deployment, and the affordability, of the OLSPS Scorecard Solution on OLSOLV effectively brings high end predictive analytics to small and medium businesses, or to big business in an easy to implement manner with comparatively low overhead costs.
IBM softwareThe OLSPS Scorecard Solution uses IBM SPSS Modeler Server, customised in-house, at its core. SPSS Modeler is IBM’s most powerful, industry leading, analytical engine. As a Gold IBM Business Partner, we at OLSPS Analytics can embed this powerful software at a greatly reduced price.
Cloud-basedAlternatively, there is a Cloud Based Scorecard Solution which can be accessed from anywhere – the perfect solution for companies with multiple offices around the country or the world, those moving into the cloud environment or simply those without the hardware readily available.

Example of how Churn Analysis is used in Telecom:

  1. Users begin to reduce their mobile usage.
  2. Analysts run the weekly customer churn analysis, and due to the reduction in usage, as well as a number of other predetermined factors, the model identifies these users as having a high propensity to churn.
  3. The results are sent to the churn management system, which the company’s marketing team can review.
  4. Based on this new information the marketing team can take action and target these customers in a personal retention advertising campaign. This campaign should entice those with high propensity to churn and assist the telecom company in retaining those clients by satisfying their needs and requirements.

How will OLSPS Analytics implement the Churn Solution?

The OLSPS Analytics Churn Solution is deployed on the in-house developed OLSOLV Deployment Platform. OLSOLV significantly simplifies the ability of semi-technical end users to run complex and sophisticated predictive solutions. This eliminates the need for a firm to employ in-house specialists.

A minimum of 3 years of historical data is required to implement a Churn Solution.

How long does it take to implement a Churn Solution?

Using OLSOLV reduces the time it takes to implement a predictive analytics solutions by about 75%.

If a companies data is Model Ready (Clean Data) then OLSPS Analytics will be able to implement our Churn Solution on OLSOLV in as little as 4 Weeks.

If a company’s data is Not Model Ready (Dirty Data) then OLSPS Analytics will be able to clean your company data and prepare it for implementation. The whole data preparation and implementation process can take from 4 to 14 weeks and it includes: data discovery, extraction and integration, data validation, cleaning, checking data integrity, transforming data, feature creation, creation of aggregates or disaggregate, data staging, auditing and publishing.

OLSPS Analytics team can assess your company data for free and advise you on the timeline of  your Churn Solution implementation. Request free assessment now!

How much would it cost to implement a Churn Solution?

The price of a Churn Solution will depend on the company size. Company size is identified by number of users and PVU (Processor Value Unit) which is determined by the number of cores your company server has. Each core has 70 PVU.

A Processor Value Unit (PVU) is a unit of measure used to differentiate the licensing of software on distributed processor technologies (defined by Processor Vendor, Brand, Type and Model Number).

IBM Software as part of the Churn Solution is installed on a Server.

Please see factors which identify business size in terms of data below:

Request Churn Solution Quote based on your Business Size.

Use Case Scenarios of Churn Solutions


Millicom International Cellular, also known as Tigo, is a mobile phone network provider which provides affordable, widely accessible and readily available prepaid cellular telephone services to more than 30 million customers in 13 emerging markets, in Latin America and Africa. Most of Tigo’s customers use prepaid services which allow them to churn at any time and without any warning. This poses a problem for Tigo, as the cost to acquire new customers is considerably higher than retaining existing customers. The OLSPS Churn Solution scores each of the customers on a regular basis to predict the probability of churn in the next few days.


Pepkor is a holding company in South Africa that resells prepaid handsets. The OLSPS Churn Solution was also successfully implemented at Pepkor, functioning in a similar fashion to Tigo’s solution.