omzetchurn

Omzetchurn is a metric used in subscription and revenue-driven businesses to quantify the portion of revenue lost to customer churn relative to total omzet, or turnover, in a given period. It provides a single indicator that combines churn dynamics with revenue concentration to assess revenue risk from customers leaving.

The term is a portmanteau of omzet, a Dutch word for revenue or turnover, and churn, the rate at which customers discontinue a service. It has appeared in business analytics discussions to describe how churn translates into lost revenue, particularly in environments with varying customer value and pricing.

Calculation can be straightforward or nuanced. In its simplest form, omzetchurn equals the revenue lost due to churn during a period divided by the total omzet in that period. If revenue per customer is uniform, this mirrors churn rate; with individuals contributing different revenue amounts, omzetchurn highlights the impact of high-value customers leaving. Practically, lost revenue is the sum of revenue from all customers who churned, and total omzet is the period’s total revenue.

Applications include assessing revenue risk, prioritizing retention initiatives, and benchmarking performance across time or segments. It complements traditional churn rate, revenue churn, and customer lifetime value analyses by tying churn directly to monetary impact.

Limitations include the need for granular customer-level data to compute accurately, sensitivity to pricing changes and seasonality, and potential underestimation if reactivations occur within the period. See also churn rate, revenue churn, omzet, and customer lifetime value.