Understanding and calculating your customer churn rate is crucial for business growth. It helps you identify potential issues with customer retention and product satisfaction. A high churn rate can significantly impact your revenue and overall business health. By tracking churn, you can implement strategies to improve customer loyalty and reduce the number of customers you lose over a specific period.
function calculateChurnRate() {
var customersAtStart = parseFloat(document.getElementById("customersAtStart").value);
var customersAtEnd = parseFloat(document.getElementById("customersAtEnd").value);
var newCustomers = parseFloat(document.getElementById("newCustomers").value);
var resultDiv = document.getElementById("result");
if (isNaN(customersAtStart) || isNaN(customersAtEnd) || isNaN(newCustomers) || customersAtStart < 0 || customersAtEnd < 0 || newCustomers < 0) {
resultDiv.innerHTML = "Please enter valid, non-negative numbers for all fields.";
return;
}
// Formula: Churn Rate = ((Customers at Start – Customers at End) – New Customers Acquired) / Customers at Start * 100
// Corrected Formula: Churn Rate = (Customers Lost during the period) / (Customers at the start of the period) * 100
// Customers Lost = Customers at Start – Customers at End + New Customers Acquired (This is incorrect, new customers shouldn't be subtracted to find churn)
// The standard formula for churn rate is: (Number of customers lost in a period) / (Number of customers at the beginning of the period) * 100
var customersLost = customersAtStart – customersAtEnd;
if (customersLost < 0) {
resultDiv.innerHTML = "The number of customers at the end of the period cannot be greater than at the start if you are calculating churn without considering new acquisitions separately. Please verify your inputs or use a retention rate calculator.";
return;
}
if (customersAtStart === 0) {
resultDiv.innerHTML = "Cannot calculate churn rate when there are no customers at the start of the period.";
return;
}
var churnRate = (customersLost / customersAtStart) * 100;
resultDiv.innerHTML = "