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Even if you run the business for a million years, you will still only have 200 members. If the churn rate is steady. It usually goes down over time though.
by no_gravity 9y ago
Even if you run the business for a million years,
you will still only have 200 members.
If the churn rate is steady. It usually goes down over time though. Because long time customers have a lower likelihood of canceling.
In other words: The past does not equal the future. If you look back on your business and see a churn rate of X%, you can expect a lower churn rate in the future. Because the "survivors" will have a lower churn rate then new customers.
In e-commerce, this effect often is pretty significant. I know multiple online-shops that make the majority of their business with long time customers. Even though over 50% of new customers drop out after the first month.