What is the primary goal of the business understanding stage for a company looking to reduce customer churn?

The primary goal of the business understanding stage, particularly for a company focused on reducing customer churn, is to understand the factors that contribute to customer churn. This involves identifying what drives customers to leave the service, which can include various elements such as customer satisfaction, product performance, pricing, and service quality. By comprehensively understanding these factors, the company can develop targeted strategies to address the root causes of churn, improving customer retention rates.

In this context, while identifying popular subscription plans, analyzing customer complaints, and conducting competitor market analyses are valuable efforts, they do not directly address the specific issue of churn. Understanding the precise reasons behind customer churn not only informs effective action plans but also helps prioritize what needs to be improved or changed to enhance customer loyalty and long-term retention.