CFO Paradigm · Example company: Cawan's Shoes
Ratios & Metrics

Churn

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What it means

Percent of customers (or revenue) lost in a period.

Why it matters

A leaky bucket beats growth. Churn compounds against you.

How to calculate — with Cawan's Shoes

Churn = Lost / Starting. Cawan's loyalty program: 900 members lost of 10,000 = 9% monthly churn.

What's at stake if you ignore this

High churn destroys LTV and inflates CAC payback.