How to calculate churn rate?
To calculate churn rate, you will need to follow these steps:
- Determine the time period over which you want to calculate churn. This is usually a month or a year.
- Identify the number of customers you had at the beginning of the time period.
- Identify the number of customers who have left (i.e., churned) during the time period.
- Calculate the churn rate by dividing the number of customers who have churned by the number of customers you had at the beginning of the time period.
For example, if you had 100 customers at the beginning of the month and 10 of them churned, your churn rate for that month would be 10%.
It is important to note that churn rate is typically expressed as a percentage. This allows you to easily compare churn rates across different time periods or against industry benchmarks.