Comparison
Churn Rate vs Retention Rate
Churn rate measures the share of customers lost; retention rate measures the share retained over the same period.
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Churn Rate
Churn Rate measures the share of customers who cancel, leave or stop using a product over a specific period.
Churn Rate = Lost Customers / Customers at Start x 100%- Category
- Retention & Expansion
- Used for
- Forecasting, Budget allocation, Performance diagnosis
Customer Retention
Customer retention measures how well a company keeps customers active over time.
Retention Rate = Customers Retained / Customers at Start x 100%- Category
- Retention & Expansion
- Used for
- Forecasting, Budget allocation, Performance diagnosis