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TIPS & TRICKS: How to Track Customer Churn Rate in your business

Oliver Zdravkovski avatar
Written by Oliver Zdravkovski
Updated over a month ago

Customer Churn Rate is the percentage of customers who stop doing business with a company during a specific time period.

Why It’s Important to Track:

  1. Measures Customer Retention
    A high churn rate means you're losing customers faster than you can replace them—unsustainable for growth.

  2. Impacts Revenue
    It's generally more expensive to acquire a new customer than to keep an existing one. High churn leads to higher costs and lower profits.

  3. Signals Product/Service Issues
    If customers are leaving, it may indicate dissatisfaction, poor service, or strong competitors.

  4. Informs Strategy
    Tracking churn helps you improve retention efforts—like customer support, onboarding, loyalty programs, or product quality.

Customer Churn Rate is a key health indicator for any recurring revenue or customer-centric business.

The Customer Churn Rate Formula is:

(Customers Lost During Period / Total Customers at Start of Period) × 100

For this, you would need 2 graphs:

  1. Lost Customers

  2. Total Customers

  3. Customer Churn Rate (Calculated Graph)

The Calculated Graph is created in the following way:

  1. Click Graphs

  2. Click Create Graph

  3. Add a name for the graph

  4. Select Calculated

  5. Click the Values drop-down menu

  6. Select %

  7. Under the Calculated Graph Settings menu, click inside the drop-down menu and type the name of the Total Customers graph.

  8. Click Add Graph

  9. The graph will appear on the list

  10. Click Edit

  11. Set the Offset to 1. (Offset refers to a value that indicates the distance from a specific starting point. It refers to any previous period on the graph. The starting point is 0, which is the current day or week, month, etc. For example, if the graph is weekly and the offset is set to 1, it would refer to last week's value. If it was set to 2, it would refer to the value of 2 weeks ago, and so on.)
    We need last week's value for the formula because that's how last week ended and the current one started.
    NOTE: For more data on how Offset works, see TIPS & TRICKS: How Offset Works in Calculated & Comparison Graphs.

  12. Click OK

  13. Click the drop-down menu and type the name of the Lost Customers graph

  14. Click Add Graph

  15. In the Formula field, type (G2/G1)*100. (G1 and G2 refer to Graph 1 and 2)

  16. Click Save Changes

  17. The Customer Churn Rate graph will be created.
    ​NOTE: If you don't see any values on it like on the image above, you need to enter values in the Total Customers and Lost Customers graphs.

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