This chapter covers
- The precise definition of the Churn Rate
- How to identify churned accounts and calculate the churn rate using SQL
- What the Net Retention rate means
- How to calculate Net Retention Rate with SQL
- What Monthly Recurring Revenue (MRR) Churn means
- How to calculate MRR Churn Rate with SQL
- How to convert churn rates between monthly and annual measurements
You already have learned that the churn rate is a measurement of the proportion of customers that quit every month or year. If you don't measure churn correctly, it's going to be that much harder to do anything about it. This chapter teaches you multiple definitions of churn that are suitable to different business scenarios and how to calculate them efficiently from a subscription database. In relation to the overall book scenario introduced in chapter 1, this chapter focuses on the process highlighted in Figure 2.1.