The churn rate is the percentage of user attrition rate for a given service over a certain period of time, compared to the total number of customers who used the service in the same period.
In any respectable marketing strategy, the churn rate is a fundamental element for marketing because it predicts and observes through churn Analysis.
This is a system of tracking and analysis that works on observation, understanding of causes, and prediction of user abandonment.
Thanks to analyses carried out with CRM systems, the company can monitor customer satisfaction levels, or customer satisfaction, and plan strategies to prevent their clients from abandoning the service.
How to calculate the churn rate
The customer churn rate is a simple mathematical formula: total lost customers in a period, divided by those present who used the service in the same period.
From this basic formula it is possible to obtain the economic value of the loss of our potential customers:
Determine lost revenue at the beginning of the month/subtract the figure you have at the end of the period and any extras.
Calculating the customer churn rate is very important for controlling and reducing the Customer Churn Rate and achieving the cancellation of this metric.
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