#5 Six Critical Numbers to Know for a Powerful ROI and How to Calculate them

5. Customer Churn Rate: Defined as the percentage of customers lost over a date range. If your company is acquiring 100 customers per year and annually churning through 95% of them it is not good. There are exceptions where a company makes so much money on each customer that it pays for the acquisition cost ten times over making retention nice, but not necessary to stay afloat. Lawyers, bail bonds firms, and plumbers can fall into this category, but generally, a lower churn rate is better.

Customer Churn Rate Calculation:

Total customers who have not purchased/donate over date range/total new and existing active customers over same date range


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