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Customer Churn Rate

27 May, 2024 1 min read

What Is Churn Rate?

The churn rate is the percentage of customers who cancel their subscriptions or stop using a service within a given period.

It is calculated by dividing the number of customers churned by the total number of customers at the beginning of the period, multiplied by 100%.

How To Calculate Churn Rate?

Churn Rate = (No. of Churned Customers / No. of Customers at Start of Period) x 100%

An Example of Churn Rate

A company has 1,000 customers at the beginning of the month and 100 customers churn by the end of the month.

Churn Rate = 100 / 1,000 X 100% = 10%

Insights About Churn Rate

The churn rate is a key metric for understanding customer loyalty and the health of a business. A significant churn rate could signal underlying issues with the product, service, or customer experience.

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