What is the opposite of churn rate?

Computer Science
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%

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2

is usually referred to as the retention rate

1 Like
3

Wouldnā€™t the retention rate be 79.2% or is it rounded down for a reason that I am missing?

8 Likes
4

Itā€™s just a typo. I guess they will fix it, eventually.

1 Like
5

Hello,

Is the significance of churn rate in the exercise to show that it is a function of SQL?

6

If [quote=ā€œjephos249, post:1, topic:384043ā€]
the retention rate shows how many people have chosen to renew, or are returning customers.
[/quote] , isnā€™t the calculation meant to be based on those who renewed or return than based on the total number of customer?

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7

Hi Jephos 249
How to find out the churn rate of April?

9

SELECT COUNT(DISTINCT user_id) AS ā€˜enrollmentsā€™,
COUNT(CASE
WHEN strftime("%m", cancel_date) = ā€˜04ā€™
THEN user_id
END) AS ā€˜march_cancellationsā€™,
ROUND(100.0 * COUNT(CASE
WHEN strftime("%m", cancel_date) = ā€˜04ā€™
THEN user_id
END) / COUNT(DISTINCT user_id)) AS ā€˜churn_rateā€™
FROM pro_users
WHERE signup_date < ā€˜2017-05-01ā€™
AND (
(cancel_date IS NULL) OR
(cancel_date > ā€˜2017-04-01ā€™)
);

10

Iā€™d second @8314154157 comment, users stayed on to the next month thus were retained. This shouldnā€™t factor in new users as the arenā€™t retained they are new.

1 Like
11

Opposite of churn rate is retention rate.
It is the rate which is retained, and can be found by subtracting from the the Total rate/amount.
retention rate = (total rate - churn rate) %
For example if say the total rate is 100 and churn rate is 30% then,
retention rate = (100 - 30)% = 70%

12

Could some explain the commands used in this code please?

13

Bhaai, is code ke commands explain karega please?

14

SELECT COUNT(DISTINCT user_id) AS ā€˜enrollmentsā€™,
COUNT(CASE
WHEN strftime(ā€œ%mā€, cancel_date) = ā€˜03ā€™
THEN user_id
END) AS ā€˜march_cancellationsā€™,
ROUND(100.0 * COUNT(CASE
WHEN strftime(ā€œ%mā€, cancel_date) = ā€˜03ā€™
THEN user_id
END) / COUNT(DISTINCT user_id)) AS ā€˜churn_rateā€™
FROM pro_users
WHERE signup_date < ā€˜2017-04-01ā€™
AND (
(cancel_date IS NULL) OR
(cancel_date > ā€˜2017-03-01ā€™)
);

This is a sql command, here one command is nested within another and lots of conditions are checked and rows are fetched and displayed.
if you know sql that then you can read and understand the query easily.
If you run the command then you can see the Query Results.
Here the row enrollments and march_cancellations are selected from table pro_users and churn_rate is calculated and the results is displayed under Query results. Part of the pro_users table is also displayed based on some condition.

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15

Blockquote dlynch03

Oct '19

Hello,

Is the significance of churn rate in the exercise to show that it is a function of SQL?

Blockquote

Itā€™s just a really common real world example in a business and this is one way to do it within SQL and the context of data.

16

newbie here drinking from the waterhose! Can someone confirm:

One correction:
END) AS ā€˜april_cancellationsā€™,

1 Like
17

Is this typed by hand when using SQL or is there an interface? Iā€™ve not a lick of knowledge about SQL today.