Customer Churn

In FMCG distribution, churn is usually gradual, not sudden: order gaps lengthen, items per invoice fall, and then the order stops. That is why early-warning indicators (such as a widening purchase gap) are more valuable than the churn rate itself.

Churn analysis is useful when it is tied to a cause: a change of sales representative, a competitor entering, a credit problem, or a drop in distribution coverage in a region.