Churn Rate Calculator

Calculate Churn Rate

  1. Enter total number of customers:
    Determine the total amount of customers your account has and place it in the first field within the calculator.

  2. Enter number of customers lost last month:
    Determine the total of customers that was lost in the last month and place it in the second field within the calculator.

  3. Enter average worth of your customer accounts:
    Determine how much an average customer account is worth for your company and place it in the third field within the calculator.

  4. Click on the "Calculate" button. Your results will be shown in the Churn Rate % and Lost Revenue boxes.
    Continue reading below to learn more about your churn rate!

Churn Rate Calculator

Benefits of Using a Churn Rate Calculator

The benefits of using a churn rate calculator are seemingly endless. One of the main benefits is how easy our PPC tools are to use, it gives you fast results and only requires two numbers, the number of customers that unsubscribed or left over the past month and the amount of customers you had at the beginning of the month.

Using our churn rate calculator will also help you realize that you may need to make business improvements, and it can improve your revenue. A churn rate calculator can help you understand your customer base better and assist in identifying if improvements are needed that could help your overall business. Your churn rate can be extremely eye-opening when you calculate it for the first time. Typically, you’ll want to keep your churn rate around 2%.

Frequently Asked Questions about Churn Rate Calculator

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What is Churn Rate?

A churn rate, also known as customer attrition, is the number of customers who are working with your company in a given period of time, and it's expressed as a percent. To calculate customer churn rate, designate a time period and tally up the total number of customers you've acquired and the number of customers who churned during that time period. Then, divide the number of customers who churned by the total number of customers acquired, and multiply that decimal by 100% to calculate your churn rate.

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Why is Churn Rate Important?

Your churn rate tells you a lot of things about your company, and when you use a churn rate calculator, you can gain insight into your changing customer base.

If you have a churn rate, it tells you that a high percentage of your clients are stopping your service every month compared to the clients you receive. Whereas, if it is a low churn rate, then that means you have a high amount of customers that you received and kept in a month. Both a low or high churn rate is an important metric that helps you analyze the health of your business.

However, it is important to track every month because If you neglect a high churn rate, then you are most likely losing more money than you're making, and over time, this can cause a larger problem. As stated earlier, A high churn rate gives you insight to improve something within your business, this may be the quality of your product or service you provide or customer satisfaction. It's important to monitor your churn rate in order to keep track of any potential problems in your strategy to retain loyal customers from discontinuing your product or service.

The hardest part about churn rate is that it can become a problem faster than you may have thought. If you don't monitor the amount of customers who stop working with you monthly by using a churn rate calculator, you may not know what direction your company needs to take.

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Ways to Reduce Your Churn Rate?

There are a few things that can affect your customer attrition or churn rate. Below, we'll talk about the most important areas, along with providing you with some tips to fix them.

Start From The Beginning

You can help to prevent customer churn from the moment someone becomes a customer by having an effective and informative onboarding process. Use a new customer welcome email and online customer onboarding, and create educational content on your blog, social media, and video channels to instruct customers and show them how to get optimal value from your product or service.

Analyze The Problem

Customer churn is bound to happen and when it does, use it as an opportunity to dive into what prompts the customer to leave, and the steps you can take to prevent a similar customer from leaving for the same reason. You can utilize these circumstances of customer attrition to dig into customer support, analyze your product or service, or identify core issues or holes in the customer experience. You can also look at the CLV to help you track if your efforts to reduce churn is working or not.

Ask For Feedback

To help decrease the amount of churn your company has, make sure you consistently and frequently ask for customer feedback at important moments across the customer experience. Track the times that have the highest churn rates, such as if your customers don't sign in or use your product or service in 20 days. As these are the customers who typically have the highest churn rates, keep track of them and send out a feedback email within the first 2 weeks to try to get them to engage more. Another attempt to engage the customer more is to send emails at designated times or milestones such as feedback or acknowledgement emails.

Build A Relationship

Another proactive approach to reducing your churn rate is to build a relationship with your customers by communicating with them consistently. Reach out to your customers with content that will be interesting or helpful, engage on social media, and reach out if issues occur so they know they can depend on you as a company.

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