Churn rate concept
What is the Churn rate?
The Churn rate is one of the web metrics that must be strictly followed to boost the performance of a business. Also known as Customer Cancellation Rate, indicates the number of customers and / or subscribers of a portal who leave the brand in question for a long period of time. It could be likened to an abandonment rate for a company's services or products.
Thanks to this data, quite interesting information can be obtained in connection with the losses generated by said abandonment, the fall in subscribers or even followers in social networks. In most of today's companies, it is studied thoroughly to detect errors and calculate losses, in case of being serious, to change strategy and recover from the viable impact.
The process to calculate this rate is by performing a simple mathematical formula that returns a percentage. Specifically, if applied to a month, it would be the result of subtract the customers or users that exist registered at the end of the month in terms of those at the beginning and also divide them by the initials to later multiply by 100.
We have indicated a specific formula, but there are many different ways to approach the Churn rate, which we will explain later, citing cases for your better understanding. It is essential to know it, and that is why we insist on it, since it indicates the extent to which a business or website is going backwards in case of losses, as well as their value and their economic impact.
What is Churn rate for?
The Churn rate is used to see how much is being lost in a business, company or online portal. It helps to know the total lost with respect to users, clients or money and, consequently, to take measures with which to solve those problems that make it not give up as it should. A vital metric that should be reviewed to correct errors and return to growth as soon as possible.
Churn rate examples
As examples of Churn rate we can have many. From a decrease in the traffic of a web page to a decrease in the clientele of a business or even a store. Its calculation is something that varies depending on the business, given that, for example, for an e-commerce it would be necessary to collect a specific consumer sector and perform calculations there; while for a website only the visitors would have to be measured.
To exemplify, we can make an assumption based on the NeoAttack's content marketing service. If, within a period of time, a decrease in the clientele that attends it is detected, it would have to be quantified by calculating that Churn rate based on the difference in customers.
More information on Churn rate
Since this is quite an important meter, it has likely caught your attention quickly. That is why we are going to offer you a series of links with more information about the Churn rate.
