Customer churn is the percentage of customers that stopped using your company's product or service during a certain time frame. You can calculate churn rate by dividing the number of customers you lost during that time period -- say a quarter -- by the number of customers you had at the beginning of that time period.
What is customer churn rate?
Customer churn rate is a business metric that shows how many customers leave your business over time. Identifying customer churn is crucial for financial forecasting and decision-making around retention or loyalty. This article will discuss everything you need to know about churn rate, why it matters and how to calculate it. What Is a Churn Rate?
How to calculate churn rate for business X?
Using the churn rate formula (Lost Customers ÷ Total Customers at Start of Chosen Time Period) x 100 = Churn Rate, we can calculate churn at 5% monthly for Business X. By using a churn rate formula like this, you can turn it into like-for-like data that help you measure progress over time.
