Bystatistics, the average Churn Rate is 2-8%. A rate of up to 2% of MRR is considered low. Moreover, the younger the company, the more often customers leave it.
If the Churn Rate is negative, it may indicate that the number of customers increased at the end of the period.
To analyze customer churn, you can use cohort analysis. In Google Analytics, it is presented in the reports in the Audience section.
Churn Rate is important for a business that relies heavily on philippines cell phone number list repeat customers for most of its revenue. If the rate is poor, it's worth looking at competitors' offers and finding out why customers no longer cooperate with the company.
Revenue Churn Rate
The metric shows how much money a business loses as a result of customer churn.
Calculation formula:
Revenue Churn = (revenue lost during the period / revenue at the beginning of the period) * 100%.
Ideally, the indicator should be minimal.
Market Share (SOM)
The indicator means the real possible market volume. It displays the market share of a certain company relative to competitors.
The following formula is used for calculation:
SOM = (firm sales / total market sales) * 100%.
Taking into account the indicator, you can look for the reason for the decline in sales, for example, seasonality, the arrival of stronger competitors on the market.