📌 Method: MemberChurn
This article explains how we calculate how many members leave the system each month.
How is churn calculated?
Find the number of active members at the beginning of the month
Find the number of members who canceled their subscription during the month
Calculate churn rate: Churn rate=Number of members who leftNumber of members at the beginning of the month×100\text{Churn rate} = \frac{\text{Number of members who left}}{\text{Number of members at the beginning of the month}} \times 100Churn rate=Number of members at the beginning of the monthNumber of members who left×100
Average and median calculation
We calculate the average churn rate for a given period to identify trends.
Example calculation
We calculate churn rate for January, February and March.
Month | Number of members (start) | Terminated members | Churn-rate |
January | 200 | 20 | 10% |
February | 210 | 25 | 11.9% |
March | 215 | 18 | 8.4% |
Calculate average churn rate:
10+11.9+8.43=10.1%\frac{10 + 11.9 + 8.4}{3} = 10.1\%310+11.9+8.4=10.1%
Calculate median churn (the middle value of the churn rates):
Sorted values: 8.4%, 10%, 11.9%
Median: 10%
Why is this important?
Churn rate shows how many members the company loses each month. A high churn rate means:
⚠️ More cancellations than usual
⚠️ Possible need for improvements in the member experience
💡 Result: An overview of the churn rate per month and the average churn rate for the period.
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