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You're all calculating churn rates wrong

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“On the surface, churn rate may seem like a natural proxy for changes in customer lifetimes. Let's dig into why that is not true.” Churn rate is not a meaningful metric to compute CLV: during the customer lifetime, the churn probability is not constant. Most of the time because…

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2026-10-10
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Billing › Business Intelligence > Customer Lifetime Value: ““On the surface, churn rate may seem like a natural proxy for changes in customer lifetimes. Let's dig into why that is not true.” Churn rate is not a meaningful metric to compute CLV: during the customer lifetime, the churn probability is not constant. Most of the time because…”