Lifetime will be 1/0.20 which is 5 years.Ī) If the Monthly customer churn rate is 12.55%, then the Customer Lifetime will be 1/0.03 which is 33 months.ī) if the Annual customer churn rate is 20%, then the Customer Monthly and annual example to illustrate the point:Ī) If the Monthly customer churn rate is 3%, then the Customer The Customer Lifetime will be for the same time period. ![]() Note that if the Customer Churn rate is a monthly % or annual %, then ![]() This site says that we can use the following formula to find the average Customer Lifetime: Customer Lifetime = 1 / Customer Churn Rate When talking about Customer Churn Rate, it is also common to talk about Average Customer Lifetime, that is the average time that a customer uses the service before churning. We can see that the 80% Annual Rate leads to the same number of customers of the 12.55% Monthly Rate after 1, 2 and 3 years. The image below shows the churns period after period. The -80% Annual Churn Rate can be converted to a -12.55% Monthly Churn Rate with the formula: (1-0.8)^(1/12)-1 It means that the service loses 80% of its customers every year. A service has an 80% Annual Customer Churn Rate.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |