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 But that's not customer churn. You have to get the ID's of your customers at the beginning of the period and the ID's of your customers at the end of your period and then do:
VAR __ChurnedCustomers = COUNTROWS(EXCEPT( CustomersAtBegin, CustomersAtEnd))
This is your numerator. Then you don't have to worry about negative customer churn numbers in your CLV calculation.
Greg_Deckler My problem is that the Customers at the end are higher than those at the Beginning. This is my formula:
- Greg_Deckler
Anonymous But that is not churn rate. Churn rate is the number of customers at the beginning of the period minus the count of those same customers that you have at the end of period divided by the number of customers you had at the beginning of the period. If you post sample data that includes customer identifiers, I can get you the correct formula but it would look something like:
Churn = VAR __Table = SUMMARIZE('Table',[CustomerKey],"__Prev",[ActiveMemberPreviousMonth],"__Current",[ActiveMember]) VAR __Prev = DISTINCT(SELECTCOLUMNS(FILTER(__Table,[__Prev] = 1),"__Cust",[CustomerKey])) VAR __Current = DISTINCT(SELECTCOLUMNS(FILTER(__Table,[__Current] = 1),"__Cust",[CustomerKey])) VAR __Lost = COUNTROWS(EXCEPT(__Prev, __Current)) RETURN DIVIDE(__Lost, COUNTROWS(__Prev), 0)