Churn rate refers to the number of customers that discontinue the use of your services or no longer make purchases through your website or mobile app. A churned customer could be someone that cancels a subscription or that hasn't transacted on your website for a given period of time. A definition of churn typically also includes a calculation of the lost revenue associated with churned customers.
How do you calculate customer churn rate?
Firstly, define a time period, then tally up the total number of customers acquired over that period and the number of customers that churned during the same period.
Then, divide the number of customers that churned by the total number of customers acquired and multiply by 100.
Number of acquired customers ÷ number of churned customers x 100
How can you reduce customer churn?
Collecting feedback and wider customer sentiment is a great way to understand what your customers think about your products and their web experience.
Qubit’s Visitor pulse can be deployed on your website to gauge what your customers think about your products, services, and online experience through polling and surveys. You can then use this contextual feedback to make data-driven personalization and wider strategic decisions.