Formula for calculating customer churn
Posted: Tue Jul 01, 2025 6:18 am
Today, it is possible to determine the customer churn rate using a special calculator service. The general principle is to divide the number of customers who left by the total number. But in order to correctly calculate the % of lost clients, take into account those who were added in the current period. The detailed formula looks like this:
The formula for calculating customer churn
But do not rush to draw conclusions about the obtained result in %, better poland phone number data calculate how much this amounts to lost profit. For example, if one client brought you UAH 500, then a leakage of 3% from 1,000 clients — took away UAH 15,000 from you. But if a client brings the business UAH 10,000, then you already lose UAH 300,000. You decide what indicator is acceptable for your business. But you must agree, when it is clearly visible how much money is wasted, the problem of customer churn no longer seems secondary.
Why do clients leave?
The author of the "bible" of marketing "About advertising" David Ogilvy calculated that 67% of cases of client loss occur due to the indifference of managers. 60 years have passed since the book was written, and a lot has changed in that time. The market has developed, and the battle for customers has intensified, and now simply the skills of the seller are no longer enough.
The lion's share of responsibility still rests on the sales department, but you should also be aware of other important factors that make customers leave today.
Price increase
Disappearance of the desired product or service from the company's assortment
Bad service
Low product quality
There is no bonus program
Technological backwardness
Ignoring complaints
Changing customer needs
How to improve the work of the sales department
First, you need to find out what and where you need to improve. NPS surveys help to reveal non - obvious problems in business, and specifically in service. Regularly inquire about the opinion of your customers - they themselves will tell you about the reasons for dissatisfaction (which leads to leaving).
When shortcomings in the sales department are discovered, pay attention to the qualifications of employees . Organize sales trainings with a professional coach, implement mandatory training of new employees according to uniform standards.
Training and control of employees
Then, check how they apply these skills in practice. The easiest way is "mystery shopper". For example, in the call center, every employee receives a test call once a month, the size of the salary bonus depends on the result. In addition to fixing errors, it also encourages them not to be allowed.
But even intensive training of managers can fail in case of poor health or personal adversity. And now your best employee forgets to offer a novelty, does not respond to objections and is no longer so friendly. The introduction of a robot assistant for calls will prevent this and relieve the burden on managers. The same high level of conversation among clients will be associated with innovations and leave a pleasant impression.
The formula for calculating customer churn
But do not rush to draw conclusions about the obtained result in %, better poland phone number data calculate how much this amounts to lost profit. For example, if one client brought you UAH 500, then a leakage of 3% from 1,000 clients — took away UAH 15,000 from you. But if a client brings the business UAH 10,000, then you already lose UAH 300,000. You decide what indicator is acceptable for your business. But you must agree, when it is clearly visible how much money is wasted, the problem of customer churn no longer seems secondary.
Why do clients leave?
The author of the "bible" of marketing "About advertising" David Ogilvy calculated that 67% of cases of client loss occur due to the indifference of managers. 60 years have passed since the book was written, and a lot has changed in that time. The market has developed, and the battle for customers has intensified, and now simply the skills of the seller are no longer enough.
The lion's share of responsibility still rests on the sales department, but you should also be aware of other important factors that make customers leave today.
Price increase
Disappearance of the desired product or service from the company's assortment
Bad service
Low product quality
There is no bonus program
Technological backwardness
Ignoring complaints
Changing customer needs
How to improve the work of the sales department
First, you need to find out what and where you need to improve. NPS surveys help to reveal non - obvious problems in business, and specifically in service. Regularly inquire about the opinion of your customers - they themselves will tell you about the reasons for dissatisfaction (which leads to leaving).
When shortcomings in the sales department are discovered, pay attention to the qualifications of employees . Organize sales trainings with a professional coach, implement mandatory training of new employees according to uniform standards.
Training and control of employees
Then, check how they apply these skills in practice. The easiest way is "mystery shopper". For example, in the call center, every employee receives a test call once a month, the size of the salary bonus depends on the result. In addition to fixing errors, it also encourages them not to be allowed.
But even intensive training of managers can fail in case of poor health or personal adversity. And now your best employee forgets to offer a novelty, does not respond to objections and is no longer so friendly. The introduction of a robot assistant for calls will prevent this and relieve the burden on managers. The same high level of conversation among clients will be associated with innovations and leave a pleasant impression.