Forum Discussion
Negative churn rate??
Anonymous I perfectly understand that you have more customers in a subsequent month versus a previous month. What you seem to fail to understand is that has zero bearing on customer churn rate. It means absolutely, 100% nothing. Read the definition of customer churn rate:
Customer Churn Rate | KPI example | Geckoboard
Customer churn rate is the % of customers that cancel/don't renew their subscription/whatever. It has absolutely nothing to do with adding customers. Hence, you are complaining about negative churn rates when you are doing the calculation 100% incorrect.
I don't think there is anything else I can say on the matter without blowing a gasket.
Community ChampionAnonymous So customer churn rate should not be negative as that violates the premise of the metric. What you need to do is to calculate the number of customers at the beginning of a period and then you need to see how many of those customers you have at the end of the period. If you do your calculation that way, then your churn rate can never be negative.