How to find out Churn Rate?

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This is a significant indicator for subscription platforms. MRR is the price paid by visitors per month of using the program.

Calculation formula:

MRR = number of clients * average revenue per client for a given period (ARPU).

Based on MRR, regular income for the year is determined. To do this, the resulting value is multiplied by 12.

You can view MRR information:

in regular financial statements;
in customer payment statements;
in the CRM system.
The metric is used in SaaS projects that offer software by subscription. It allows you to compare the profit received from customers with the costs of attracting them.

Churn Rate
This metric shows how many users stopped being clients of the company during a specific period, for example, refused service.

The formula for calculating Churn Rate is:

Churn Rate = [(number of customers at the beginning panama telegram data of the period – number of customers at the end of the period) / Number of customers at the beginning of the period] * 100%.

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 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.