Why it’s important
Churn rate is an essential means of calculating customer retention. Churned customers are those which cease to use your product or services during an allotted window of time. Measuring the rate at which customers churn allows you to identify how effectively you are retaining revenue.
How to create it
To create our metric in FUTRLI we’ll need to know:
- Our total number of Customers last period
- The number of Customers from last period still using us this period
Both of the aforementioned are non-financial metrics which we will have to upload into FUTRLI via CSV. When doing this, we recommend using FUTRLI Child categories to split your Customer Base into two groups – Existing and New. Existing Customers are those whom were subscribed to your service or whom used your service last period and New Customers are those whom didn’t. You’ll find an example import below.
Once your data has been imported, you can build your KPI. To calculate Churn Rate we need to use period offset to select our number of Customers one period ago, and then divide the resultant figure by our number of existing Customers this period.
Once done you can view your Churn Rate report