Can anyone post the equation for calculating a hosting company's churn rate?

Thanks in advance.

Anna

I think you should post this message on any mathematics form.:D :D

I was hoping that another hosting company has this equation and wouldn't mind sharing it.

Anyone?

We define our churn as the total number of subscribers who cancel (whether involuntarily due to non-payment or voluntarily, at such subscriber’s request) from our service during the period, expressed as a percentage of the average number of our subscribers during that period.

Example...

We have 60 cancelations. We average 5000 total customers during the month. 60/5000 x 100% = churn

You can do this for yearly too.

Churn rate is subjective, as there are a few ways to calculate due to the various factors other companies through in.

interestingly enough I've been working on a business plan for this industry (It's for me).

from my plans point of view I have to redefine churn to 2 (two) basic types :

1) expirations without renewing
2) cancelations ( within the guildlines of your TOS not CC fruad )

both have a level of priority ( cancelations have a higher priority ), both will show you a trend in your service towards your customer.

If a client does not reapply for services after expiration, then your service or followup is bad. Solution for this type of client is the "ten questions script" ask 10 questions on how you could improve, modify ... based on thier response you sould be able to guage where your problem is at.

If you are getting cancelations, > than your normal rate. Then there is something that you are promising within your web site that the customer is not recieving.

-Michael
p.s.
UmBillyCord defined the formular correctly.