An equation of sorts, churn rate is determined by taking the number of participants that have recently stopping using a certain service and dividing that number by the average number of participants in all. This outcome will provide information relating to how successful a current business or marketing plan is. You can also determine patterns in your growth or decline rate and figure out what the average duration was that someone used your services.
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It is a good idea to monitor your churn rate on a consistent basis. This can help you adjust your marketing or your game plan before a significant decrease in popularity occurs. How you approach your business can be determined by churn rate but you can also use this information to provide updates to your investors periodically.