CustomerChurn: 'CustomerChurn'

In Displayr/flipRevenueMetrics: Analytics for subscription businesses

CustomerChurn

Description

The percentage or number of customers who could churn in a period that did churn.

Usage

CustomerChurn(data, ratio = TRUE)

Arguments

data	A MetricData object.
ratio	If TRUE, the statistic is returned as a ratio.

Details

The definition of churn is is not the most widely cohort.typed definition. A more common definition is the proportion of customers that churned. These two measures differ in some situations:

1. Incomplete periods. The traditional metric can only be cohort.typed with completed metrics. This function computes churn for periods that are not yet complete, by using the dat for the customers that were have been up for renewal prior to the point at which the analysis is conducted.

2. Contracts that extend over multiple subsscription lengths. E.g., a two year contract for a product that typically has a one year subscription. This function ignores such contracts in their first year (as the customer cannot churn). Thus, this function will show a higher churn rate than the more traditional churn.

3. Contracts that start and end with a subscription-length period. For example, if subscriptions are yearly, and a customer starts on the 1st of Jan and churns on the 30th of December, they will not appear in the churn statistics in the traditional metric. They do appear in the calculations in this function.

Another edge cases is inconsistent contract ends. For example, if a company has a contract that runs from January to March, and another than runs from January to December, the contract ending in March isn't couunted as Churn in this function (but is counted as contraction).

Value

A named vector if cohort.type is set to "None" or "Preceding", or, a matrix. This will contain a number of attributes includeing:

1. denominator cohort.typed when ratio is TRUE.

2. numerator cohort.typed when ratio is TRUE.

3. The detail cohort.typed when ratio is TRUE.

Displayr/flipRevenueMetrics documentation built on June 14, 2025, 6:54 p.m.