sumwerk

Customer churn rate

The customer churn rate is the share of paying customers at the start of a period who stopped paying during it.

Customer churn rate = customers who churned in the month ÷ paying customers at the start of the month

The denominator matters. Dividing by the customers at the end of the month, or adding the month's new customers, gives a smaller number. Pick one definition and keep it.

A small monthly rate compounds: 3 % a month is about 31 % a year.

How sumwerk does it

sumwerk measures every month against what it started with and marks the running month as measured to date. Churn is also shown per plan, owner or any attribute.

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