📌 Method: MemberChurn
This article explains how we calculate how many members leave the system each month.
How is churn calculated?
Finds the number of members at the beginning of the month
Finds the number of members who quit during the month
Calculates 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
Shows churn trends
We see how the churn rate changes over time.
Example calculation
We will calculate the churn rate for the month of March.
Month start | New members | Terminated members | Month-end |
200 | +30 | -40 | 190 |
We calculate churn rate:
40200×100=20% churn-rate\frac{40}{200} \times 100 = 20\% \text{ churn-rate}20040×100=20% churn-rate
If we do this for several months, we can identify trends.
Why is this important?
A high churn rate can mean that many members leave the platform, which can be a sign of dissatisfaction or lack of value in the product. It helps businesses take corrective actions to improve retention.
💡 Result: An overview of the churn rate per month, as well as the average churn rate for the period.
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