See, I told you guys churn is tricky. ;) (1) The formula you provided is for calculating monthly churn. >
Yep, though it could be adjusted for any recurring period. > (2) If I wanted to calculate annual churn, I'd use the same formula, but > count cancelled customers for the entire year and divide it by active > customers at the end of the previous year (then transform from a decimal to > a percent by multiplying by 100)? > Yep, see above. > (3) If I wanted to calculate average (mean) monthly churn for the previous > year, I'd then devide the result from #2 by 12? > A mathematician might correct me, but I think that's correct. Here's the thing I learned about churn from my work in software subscriptions: its value is in being able to compare yourself to yourself, and it's VERY easy to get distracted by other peoples' churn. (4) How do you count canceled customers? Do you only count the ones who > were included in your *Previous month's active customers* (or *Previous > year's active customers* if measuring annual churn)? I could see arguments > for and against, but if you *don't* restrict it to the members who were > counted from the previous period, I'd worry that you get very different > measures depending on the kind of space it is in a way you wouldn't > necessarily want. A space that has a lot of short-term members (travelers, > coworking visa users, day pass users, people who read about the business > and want to see an exemplar model first hand, etc.), could easily have an > annual churn of over 100% while growing in total membership and having a > very satisfied user base. If only lost customers from the previous period > are counted that same space might have a very low churn rate relative to > other spaces that had much lower churn rates when inherently short-term > members are included. > "*I'd worry that you get very different measures depending on the kind of space it is in a way you wouldn't necessarily want." * Exactly why churn is relative to *your* business, and businesses that are more like it. Given that "coworking" is about as specific as "restaurant", comparing churn rates without more context could be like comparing McDonalds with French Laundry. :) -Alex -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
