How To Calculate Customer Churn Rate

Last Updated on August 16, 2023 by Jake Sheridan

In this tutorial, you will learn how to calculate customer churn rate in Google Sheets.

How To Calculate Customer Churn Rate in Google Sheets

If you are running a business online, you may be wondering how to measure the effectiveness of your customer retention efforts. One of the key metrics to track is your business’s customer churn rate.

The customer churn rate is the percentage of customers that stop doing business with you within a given time period. It is calculated by dividing the number of customers lost in a specific time period by the total number of customers at the beginning of the time period.

For example, if your online store had a total of 1000 monthly visitors at the start of the month and 950 at the end of the month, your business has just lost 50 customers. The churn rate can be calculated using the formula (50/1000) = 0.05 or 5%.

Monitoring your customer churn rate helps you identify areas of improvement in your customer retention strategies. It also helps you understand how your business is performing in terms of customer loyalty and satisfaction.

In this guide, we will show you how to calculate your customer churn rate in Google Sheets.

How To Find the Customer Churn Rate in Google Sheets

Here’s how to find the customer churn rate in Google Sheets.

Step 1

Next, you must find the number of customers at the start of the time period and the number of customers lost by the end of the period. We can find the number of customers lost by finding the difference between the number of customers at the start and end of each month.

Step 2

Next, divide the number of customers lost during the period by the number of customers at the start of the period.

From our sample data above, we can see that our business encountered a churn rate of 6.4% in the first month and 17.9% in the next month.

Step 3

We can convert these decimal values into percentages by selecting the cells and clicking on the Format as percentages icon seen below.

Summary

This guide should be everything you need to calculate customer churn rate in Google Sheets.

You may make a copy of this example spreadsheet to test it out on your own.