This Way It Is Possible To Have A Real View Of Future Revenue.churn Ratechurn Rate Is The Customer Cancellation Rate. This Metric Reveals The Number Of Customers, In Relation To Your Base, Who Gave Up Your Service. With This Information, You Can Identify The Impact On Revenue, But Also Turn On The Warning Signal When The Rate Is Too High And Shows That There Is Some Problem In Customer Loyalty.
To Calculate The Cancellation Rate, Simply Divide The Number self employed data Of CustomersBy The Number Of Customers At The Beginning Of The Month. To Obtain The Percentage, Multiply The Result By Cac (Customer Acquisition Cost)cac Is The Metric That Shows The Cost Of Customer Acquisition, That Is, How Much The Business Is Investing To Acquire Each New Customer. This Metric, Compared To Ltv , Helps To Understand Whether The Investments Are Paying Off Or Whether They Are Too High In Relation To Their Return.
The Cac Calculation Must Divide The Sum Of Investments In Marketing And Sales By The Number Of Customers Acquired In A Given Period.ltv (Customer Lifetime Value)ltv Is The Value Of The Customer's Lifetime, That Is, How Much Money They Leave With Your Company While Purchasing Its Products Or Subscribing To Its Services. Based On The Ltv History, It Is Possible To Have Greater Predictability About Future Income, In Addition To Comparing It With The Cac And Realizing Whether You Are Not Spending Too Much In Relation To The Return You Are Getting.