What is the opposite of churn rate?


#1

Question

In the context of this exercise, what is the opposite of churn rate?

Answer

The opposite of churn rate is usually referred to as the retention rate.

While the churn rate shows how many people have canceled a service, the retention rate shows how many people have chosen to renew, or are returning customers.

The calculation for churn and retention can vary on the implementation, but usually the calculation is

retention rate = 100% - churn rate

So, if the churn rate is 20.8%, then the retention rate is

100% - 20.8% = 79.1%