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Churn rate calculation

Ronny Christensen avatar
Written by Ronny Christensen
Updated this week

📌 Method: MemberChurnReport

How is it calculated?

  • Finds the number of members at the beginning of the month.

  • Finds how many members cancelled their membership.

  • Calculates churn rate using the formula: Churn-rate=(Lost membersStarting members)×100\text{Churn-rate} = \left( \frac{\text{Lost members}}{\text{Starting members}} \right) \times 100Churn-rate=(Starting members Lost members)×100

Example:

Period: March

  • Starting members: 200

  • Lost members: 30

  • Churn rate: (30 / 200) * 100 = 15%

Why is this important?

A high churn rate means that many members leave the system. This can indicate dissatisfaction, poor user experience, or lack of value in the membership.

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