Why Modeling Churn is Difficult

Customer churn is a really interesting problem. It appears to be a simple calculation, but the more you explore it the more complex it becomes. Evidence of this complexity appears in the variety of articles written on the subject, such as:

For Entrepreneurs uses a very straightforward method of calculation, which is then used as the basis for a number of other important SaaS metrics.

Chaotic Flow‘s SaaS metrics archive presents some very interesting questions.

HubSpot expands the subject of churn rate into an entire e-book.

Shopify has a great article on the complexities of calculating churn.

One of the best ways to understand a problem is to create a mathematical model of how it works.

The question we need to answer is: “What exactly is Churn?”

via Why Modeling Churn is Difficult.


About Bob Warfield

Here's my bio: http://www.smoothspan.com/management.html
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