This is CLV calculator for your product. Here is the disclaimer of the landing page fields. "Initial Number of Users": This refers to the total number of users at the beginning of a specific period. It represents the starting point from which the churn rate will be calculated.
"Final Number of Users": This refers to the total number of users at the end of the same specific period. It represents the number of users remaining after a certain period, usually a year.
"x" in this context: represents the monetary value of the product on a yearly basis, and the calculated CLV is a multiple of that yearly value, indicating the expected total value generated from a single customer over their lifetime.
Reference: Calculate CLV - https://deluxeblogtips.com/calculate-clv/
Example of what data you have to input in churn rate calculator field: If you have a year-to-year subscription model and want to calculate the churn rate, you can still use the same approach. Here's how you can do it:
Initial Number of Users: This refers to the total number of users at the beginning of a specific year. For example, if you're calculating the churn rate for the year 2023, you'd input the total number of users you had at the beginning of 2023.
Final Number of Users: This refers to the total number of users at the end of the same specific year. For example, if you're calculating the churn rate for the year 2023, you'd input the total number of users you had at the end of 2023.
By comparing the initial and final numbers of users within the same year, you can calculate the churn rate for that specific year. This allows you to understand the percentage of users who did not renew their subscription from the beginning to the end of the year.
Which Number should I input in the final number field?
In the churn rate calculator, the "Initial Number of Users" refers to the total number of users at the beginning of a specific period (e.g., a year), and the "Final Number of Users" refers to the total number of users at the end of the same specific period.
So, if you're calculating the churn rate for a specific period, such as a year, you would input the total number of users you had at the beginning of that year as the initial number of users, and the total number of users you had at the end of that year, after renewals, as the final number of users.
By comparing the initial and final numbers of users within the same period, you can calculate the churn rate for that specific period. This allows you to understand the percentage of users who did not renew their subscription from the beginning to the end of the period.
Reference: Calculation break down - https://ibb.co/FHpHyzf