Dormancy Rate
Measure the number of customers that are not using your product in a given time period.
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Overview
As inactive customers are more likely to churn, the Dormancy Rate metric gives your team insight into possible customer loss.
Dormancy Rate Formula
Dormancy Rate = (Number of dormant customers during a given period) / (Total number of active customers at the beginning of the period) x 100
By calculating and monitoring Dormancy Rate, businesses can identify trends in customer engagement, develop targeted reactivation strategies, and ultimately improve customer retention and revenue.
Reporting frequency
Monthly
Example of KPI target
7% dormant
Audience
Marketing Manager, Support Manager
Variations
Rate of dormancy
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