The churn rate formula can be expressed as follows

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Customer churn rate is a metric used to measure the number of customers who stop using your product or service in a given period.

In addition, customer churn rate is a critical metric for businesses as it provides insight into customer retention and satisfaction. It also indicates the rate at which customers are leaving the business and no longer generating revenue.

Analyzing this indicator may seem difficult, but results ecuador phone number data that show high customer churn rates can be costly for any business, as it requires spending more money and effort to acquire new customers to replace the ones who left.

Formula for customer churn rate


For example, if your business starts the month with 1000 customers and loses 50 customers by the end of the month, the customer churn rate for that month would be:

Customer churn rate = (50 / 1000) x 100 = 5%

Alternatively, the customer churn rate can be calculated using the customer retention rate. It is done by simply lowering the customer retention rate from 100.

Customer churn rate benchmarks by industry
Your churn rate can vary depending on your strategies. of business, although it can also vary by industry. For an easier way to analyze this value, using the retention rate might be the best option so you can better understand your customers' behavior. by both values.

The percentage of existing customers who remain your customers. after a certain period is called customer retention rate.

Here is CustomerGauge customer retention rate data.