All language subtitles for 32 - Churn Rate V1 - lang_en

To calculate churn rate,

we need two pieces of data for the time period we're calculating the churn rate for.

First, how many costumers were with us at the beginning of the time period?

Then, of those costumers,

how many remained with us by the end of the time period?

So, for week A here,

we have churn rate being calculated for each month.

This is the formula we're going to be using.

Essentially, this is calculating the difference between

these numbers and dividing it by the beginning number.

So, let's go ahead and calculate this.

So, this will be 135 minus 130 over 135.

So, as you can see,

they have some churn over the year with the highest being in the month of February.

When we started with 155 customers,

but we're left with only 140 of those.

But we more than made up by having a few months of very good growth rate.

Remember, growth rate is tracking the number of new users per month,

which is reflected in the increasing number of

new customers at the beginning of the month in the second part of the year.

While the churn rate keeps a tally of last customers,

the growth rate follows how many new paid customers started buying from the company.

To experience growth, a company should aim to have

a growth rate that is higher than the churn rate.