Calculation formula:
Posted: Sat Feb 01, 2025 5:45 am
How to find out Churn Rate?
To analyze customer churn, you can use cohort analysis. In Google Analytics, it is presented in the reports in the Audience section.
Churn Rate is important for a business that relies heavily on repeat customers for most of its revenue. If the rate is poor, it's worth looking at competitors' offers and finding out why customers no longer cooperate with the company.
Revenue Churn Rate
The metric shows how much money a business loses as a result of customer churn.
Calculation formula:
Revenue Churn = (revenue lost during the period / revenue at the beginning of the period) * 100%.
Ideally, the indicator should be minimal.
Market Share (SOM)
The indicator means the real possible market volume. It displays the market share of a certain company relative to competitors.
The following formula is used for calculation:
SOM = (firm sales / total market sales) * 100%.
Taking into account the indicator, you can look for the venezuela telegram data reason for the decline in sales, for example, seasonality, the arrival of stronger competitors on the market.
Share of Wallet (SOW)
The metric displays the amount (in %) for which the customer ordered goods from your company from the total amount spent on products of a similar category.
SOW = (amount spent on your products / amount spent on products in the same category) * 100%.
Determining the share of wallet requires professional research and focus groups.
Customer Retention Rate (CRR)
The metric shows how many clients (in %) remain active over a certain period of time.
To analyze customer churn, you can use cohort analysis. In Google Analytics, it is presented in the reports in the Audience section.
Churn Rate is important for a business that relies heavily on repeat customers for most of its revenue. If the rate is poor, it's worth looking at competitors' offers and finding out why customers no longer cooperate with the company.
Revenue Churn Rate
The metric shows how much money a business loses as a result of customer churn.
Calculation formula:
Revenue Churn = (revenue lost during the period / revenue at the beginning of the period) * 100%.
Ideally, the indicator should be minimal.
Market Share (SOM)
The indicator means the real possible market volume. It displays the market share of a certain company relative to competitors.
The following formula is used for calculation:
SOM = (firm sales / total market sales) * 100%.
Taking into account the indicator, you can look for the venezuela telegram data reason for the decline in sales, for example, seasonality, the arrival of stronger competitors on the market.
Share of Wallet (SOW)
The metric displays the amount (in %) for which the customer ordered goods from your company from the total amount spent on products of a similar category.
SOW = (amount spent on your products / amount spent on products in the same category) * 100%.
Determining the share of wallet requires professional research and focus groups.
Customer Retention Rate (CRR)
The metric shows how many clients (in %) remain active over a certain period of time.