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What is the formula for calculating customer churn rate?

Asked 3 years ago

How do you calculate the customer churn rate and what is considered to be a good rate?

Churn rate Customer churn rate Customer lifetime value Ltv

Emilė Kleopatra Miežlaiškytė

Friday, November 12, 2021

The customer churn rate is the rate at which customers stop doing business with you, so it's calculated by taking the number of customers that you lost last quarter and dividing that by the number of customers that you started with last quarter. A "good" customer churn rate is generally lower than 5%, but this number varies based on the industry.

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