Calculating Customer Churn

Know your customer churn rate and gain a deeper understanding of your business health Churn rates are key indicators of a subscription-based business’ health.

How to Calculate Customer Churn (Formula):

(Number of Customers Lost) ÷ (Original Number of Customers)

While simple on the surface, deciding how to calculate customer churn can get tricky. You have to account for revenue, time spans, customer churn vs. revenue churn, avoidable vs. unavoidable churn, and other factors. For an in-depth look at churn, check out our Essential Guide to Churn.

Calculating Churn with Gainsight

Gainsight offers an intuitive Customer Success platform that provides customer intelligence you can use to calculate customer churn. Gainsight is also packed with features to further improve your churn rates.

With Gainsight, you can:

• Easily view customer health scores and receive alerts when customers are at risk of churning
• Automate workflows for customer retention and product usage
• Work collaboratively across departments to turn customer feedback into reality
• View product usage, support tickets, survey responses, and other customer information in one place

Learn more about Customer Churn:

• Gainsight’s Essential Guide to Churn
• Gainsight Glossary – Annual Churn Rate
• Blog – What to Do When a Customer Churns