What to do next
Show the working, step by step
Where I used this
At Laser Treat I brought patient records and customer experience systems onto one platform across the group, and patient retention rose 13%.
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Where churn usually comes from
- The first weeks. Customers who never get the first result they came for leave early. Look at churn by joining month, not only in total.
- Service failures. A missed delivery, a long queue or an unanswered complaint. These show up in support logs before they show up in churn.
- Value for money. When the price rises or a cheaper option appears. Ask the customers who leave, and check your price increase math first.
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Questions
How do you calculate churn rate?
Divide the customers lost during a period by the customers you had at the start of it. Losing 100 of 2,000 customers in a month is a 5% monthly churn rate.
What is the difference between customer churn and revenue churn?
Customer churn counts people; revenue churn counts money. Losing a few large accounts can mean low customer churn but high revenue churn, so track both.
How does churn affect customer lifetime value?
The average customer lifetime is roughly 1 divided by monthly churn. Halving churn roughly doubles how long a customer stays, and the lifetime value with it.