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Learn How to Calculate Churn Rate – with an example

2 min read
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Churn rate is an important KPI for Digital Marketers and Entrepreneurs. It will help in making crucial business decisions and create calculated marketing Budget. The above video clearly explains how to calculate churn rate in a simple way

Definition of Churn Rate

Churn rate is the percentage of customers or subscribers who stopped using your product or service over a particular period of time

How to Calculate Churn Rate?

To Calculate Churn rate, divide the number of customers lost in specific time period by number customers acquired in the same time period and multiply the obtained number with 100

Formula for Churn Rate

churn rate formulae - How to calculate churn rate

 

Example to Calculate Churn Rate

Let us calculate the churn rate of a ‘xyz’ mobile app

Assume a mobile app has got 1000 subscribers(installs) in one month and 50 uninstalls in the same month. We can say that,

Number of Customers lost: 50

Number of Customers Gained: 1000

By the above formulae churn rate would be (50÷1000)×100 = 5

Therefore, the churn rate of ‘xyz’ mobile app is 5%

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