High Churn and Low Customer Retention

The company faced an urgent challenge: too many users were leaving after only a short time. Nearly one-third of new customers became inactive within their first three months, signaling disengagement before meaningful value was delivered.

Support efforts were reactive instead of proactive. Teams only stepped in after a customer canceled or complained, leaving little opportunity to prevent churn. Without visibility into early warning signs—like reduced logins, incomplete orders, or unanswered messages—the business had no way to intervene in time.

This rising churn directly impacted growth. Every lost user meant more money spent on marketing and acquisition just to replace them. Costs rose while lifetime value (CLV) fell, creating an unsustainable cycle where retention was constantly undermining revenue growth.

The leadership team recognized that without a proactive engagement strategy, churn would continue eroding profitability and long-term customer loyalty.