How To Calculate Churn Rate

Depending on your service or product, these criteria will differ substantially. However, once you’ve aligned on a core set of metrics, you can proactively work to reduce your churn rather than react once your customers have already churned.

What Are the Impacts of Churn Score?

Providing your business teams across sales, marketing, and support with a churn score can have huge implications because it allows your business teams to take action to help customer retention rates.

With a churn score in place, your support teams can prioritize the highest value tickets in real-time using your product usage data, your sales team can identify possible red flags, and your marketing team can enroll your users in nurture campaigns to keep them engaged with your brand.

When one of your customers takes action affecting their churn score, you can notify the appropriate team in real time and customer retention action can be taken. With a churn score for each of your customers, you can ensure that you are constantly working to improve your retention rate and build better customer experiences.

How to Implement Churn Score

As mentioned in the article, churn rate on its own may not be useful to you. But having a churn score for each customer in your data warehouse can really make a difference. The problem of syncing data from your warehouse to your downstream business tools can be challenging as it requires you to integrate with third-party APIs and build and maintain custom pipelines.

Reverse ETL platforms like Hightouch completely eliminate this problem. With Hightouch, you can leverage all of your existing data models in the warehouse or simple SQL to sync data to 100+ destinations. You simply define your data and map it to the proper fields in your end destination. You can sign up for a free Hightouch Workspace today to get started!

Each company’s churn rate will differ depending on the actions and behaviors your customers can do and how much their impact a customer churning.

A churn score is worthless unless you’re taking action on it. Hightouch makes taking action on a churn score easy by allowing you to set up notifications when customers exceed a specific score that you set so that action can be taken immediately.