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You have completed Introduction to Churn and Lifetime Value (LTV) Analysis!
You have completed Introduction to Churn and Lifetime Value (LTV) Analysis!
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We introduce the concepts of Gross Churn and Net Churn.
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exclude new customers you acquire
over the timeframe you're analyzing.
0:00
Some people refer to this distinction
as gross churn versus net churn.
0:03
I like that way of thinking
about it because it's clear
0:07
what the distinction is.
0:10
Gross churn doesn't include new customers,
net churn does.
0:12
Let's walk through a few
examples together.
0:16
If we started the year with 100 customers
and 20 customers churn out, and
0:18
we added 30 new customers over the year,
our gross customer churn rate would be
0:24
20%, the 20 divided by the 100
beginning of year customers number.
0:29
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