How often you calculate and review your company's churn rate will depend on how much business your company does. For example, if you have hundreds or thousands of customers, it might be wise for your marketing, sales, or customer success team to track churn rate monthly.
If you have a relatively small customer list, semi-annual or annual tracking may be sufficient. Note that new customers who join during whatever time period you choose should not be counted towards your churn rate.
Churn rate formula
Annual churn rate = number of customers at the beginning of the year - number of customers at the end of the year number of customers at the beginning of the year
Customer Churn Example
To calculate churn rate, we can use the example indonesia mobile database metric below.
"Customer Retention Metrics: Churn Rate Example"
Let's say our company starts September with 10,000 customers. By the end of the month, we discover that 500 people have left our company. This means our churn rate is 5% 10,000 customers - 9,500 customers 10,000 customers = 5%.
Now, let's say we gained 275 customers in September and lost 500 customers in October. Our churn rate for October is 5.11% 9,775 customers - 9,225 customers 9,755 customers = 5.11%.