What is churn rate and why is it important? — NeoDove

What is Churn Rate?

Different Types of Churn

Voluntary Churn

Reasons why voluntary churn occurs

  • The clients’ experience failed to meet their expectations. Or, it failed to solve the problem they expected it would solve.
  • The customer was dissatisfied with your product/service. And, this resulted in them having to look for alternative solutions.
  • A competitor could have piqued their interest. Perhaps via a more appealing alternative that better suited their needs/budget.
  • A customer could be closing down operations or going out of business. As a result, they may no longer need your service.

Involuntary Churn

Reasons why involuntary churn occurs

  • Expired cards
  • Hard Payment Decline. These are performed to prevent fraud when a card is lost or stolen.
  • Soft Payment Decline. This occurs when the card card has reached its credit limit.
  • Network Failures

How to calculate Churn Rate?

5 easy steps to remember when calculating churn rate:

  1. Decide on a timeframe — monthly, quarterly or annually.
  2. Determine the total number of customers at the outset of the period.
  3. Calculate the number of customers who churned (lost) by the end of the period.
  4. Divide the no. of lost customers by the no. of customers you initially had.
  5. Multiply your answer by 100.

So, why does churn rate matter?

What is a good churn rate?

Churn Rate vs. Retention Rate

What is retention rate?

How to calculate retention rate?

What is a good retention rate?

What’s the difference between churn rate and retention rate?

Conclusion

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NeoDove is an end-to-end tech-enabled business communication and reporting platform. Meant for vertical and horizontal communication. Neodove.com

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NeoDove

NeoDove

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NeoDove is an end-to-end tech-enabled business communication and reporting platform. Meant for vertical and horizontal communication. Neodove.com