Churn Rate Calculator
It’s one of the more common ways to measure customer loyalty. Subscription-based services will have a high churn rate, which means they have frequent new customers who are constantly refreshing their user base.
Companies with a longer average customer lifetime value will likely have lower churn rates, because it’s harder to find new customers than retain old ones.
What can low churn rate do for business?
A business with a higher customer lifetime value will generate more revenue from their current customers. This is because they’re able to retain those existing users and get repeat sales from them, as opposed to spending money on finding new customers all the time.
The less people leave your service, the fewer resources you have to spend on finding new customers. You could even make an argument that a high churn rate is a sign of failure, because the business is unable to retain its users.