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Churn Prevention ROI Calculator

 Key Components of the ROI Calculator
  1. Inputs:

    • Current monthly revenue
    • Churn rate before using the service
    • Expected churn rate after using the service
    • Cost of the churn prevention service
  2. Outputs:

    • Revenue retained due to reduced churn
    • Net profit from using the service
    • ROI percentage

Formula for ROI

ROI(%)=(Cost of Service/Net Profit)×100

Where:

  • Net Profit = (Revenue retained due to reduced churn) – (Cost of the service)
  • Revenue retained due to reduced churn = (Current monthly revenue) ×\times (Churn rate before – Churn rate after) ×\times Number of months