Your churn rate tells you a lot of things about your company, and when you use a churn rate calculator, you can gain insight into your changing customer base.
If you have a churn rate, it tells you that a high percentage of your clients are stopping your service every month compared to the clients you receive. Whereas, if it is a low churn rate, then that means you have a high amount of customers that you received and kept in a month. Both a low or high churn rate is an important metric that helps you analyze the health of your business.
However, it is important to track every month because If you neglect a high churn rate, then you are most likely losing more money than you're making, and over time, this can cause a larger problem. As stated earlier, A high churn rate gives you insight to improve something within your business, this may be the quality of your product or service you provide or customer satisfaction. It's important to monitor your churn rate in order to keep track of any potential problems in your strategy to retain loyal customers from discontinuing your product or service.
The hardest part about churn rate is that it can become a problem faster than you may have thought. If you don't monitor the amount of customers who stop working with you monthly by using a churn rate calculator, you may not know what direction your company needs to take.