📌 Method: MemberChurn
This article explains how we calculate how many members leave the system each month.
How is churn calculated?
Finding the number of members at the beginning of the month
Finding the number of members who leave during the month
Calculating the churn rate
Churn rate=(Number of members who leftNumber of members at the beginning of the month)×100\text{Churn rate} = \left( \frac{\text{Number of members who left}}{\text{Number of members at the beginning of the month}} \right) \times 100Churn rate=(Number of members at the beginning of the monthNumber of members who left)×100
Showing churn trends
We track how the churn rate changes over time.
Example Calculation
We want to calculate the churn rate for March.
Month Start | New Members | Canceled Members | Month End |
200 | +30 | -40 | 190 |
We calculate the churn rate:
40200×100=20% churn rate\frac{40}{200} \times 100 = 20\% \text{ churn rate}20040×100=20% churn rate
By doing this for multiple months, we can identify trends.
Why is this important?
A high churn rate may indicate that many members are leaving the platform, which could signal dissatisfaction or a lack of perceived value in the product. This helps businesses take corrective actions to improve retention.
💡 Result: An overview of churn rate per month and the average churn rate for the period.
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