How to calculate churn rate

What is Churn?
Customer Churn Rate
Churn Rate and Marketing Automation
Churn Rate calculate
Duce Churn Rate
Churn Rate Reduction with Ternair Marketing Automation

What is Churn?

Churn, also known as customer turnover, is used to indicate the number of customers your business loses over a period of time. This indicates your company's ability to retain customers. Churn has a direct impact on the profitability of your business, so it is important to understand churn. What are reasons for customers to churn?In general, it costs more money to attract new customers than to retain existing ones. To chart the percentage of customers who churn, the churn rate is a good indicator.

Customer Churn Rate

The churn rate indicates customer turnover over a period of time. A customer who decides to leave your company and stop buying your products or services is also called a churn customer. The customer churn rate indicates the number of customers your company loses over a given period of time. The customer churn rate is generally expressed as a percentage. How to calculate the churn rate and what to consider when calculating the churn rate is explained later on this page.

Churn Rate and Marketing Automation

Reducing churn is essential and for many companies it is a problem to seriously consider. No company wants to lose customers. When mapping the churn rate, it is important to also find out the reason why existing customers are leaving. If you understand why your customers churn, you can respond accordingly and take proactive measures to prevent future churners. By using a marketing automation platform combined with Customer Data Platform functionalities, you create a complete picture of characteristics, activities and preferences of your customers. With this, you can give them information at the right time to make decisions. A marketing automation platform helps you personalize communication with relationships at the right time. This allows you to run more efficient campaigns that lower the churn rate and ensure customer retention. On average, this is between a 5-10% decrease in churn.

Calculate Churn Rate

To calculate the churn rate, divide the number of customers leaving in a given period by the total number of customers at the beginning of that period. The period is not fixed, but can be determined by you. You agree on this period in advance and it can vary from a month to a few years. Make sure that the period you choose is relevant. Before you can calculate the churn rate, it is important that you know the following things: the period for which you want to calculate the churn rate, the number of customers at the beginning of that period and the number of customers you have lost during that period. The formula will then look like this:

(the number of customers left / the total number of customers at the beginning of the period) x 100

Because churn is a major concern, it is recommended that you calculate, on a regular basis, both monthly and annually, the churn rate. This allows you to respond more quickly to current events and try to lower the churn rate.

Churn Rate Reduction with Ternair Marketing Automation

Our advanced software enables you to reduce churn rate. Combine customer data and marketing automation techniques to capitalize on "triggers" of customers likely to churn. With our tool, develop personalized marketing campaigns specifically designed to reduce churn rate. Here, timing is key. Based on triggers in your data, automatically send the right message at the time of need. Keep customers engaged with your business by developing effective customer service strategies. An engaged customer is essential for the success of your business and in reducing the churn rate.Offer customers the best experience by aligning information from different (digital) channels. Create a complete and personalized customer experience about your organization, products and services. Ternair can help you achieve this by using advanced data modeling, marketing automation and personalized communication strategies. Of course, our specialists are available to assist teams seeking support in reducing churn.

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