Building the dashboard- Stage 2: Design
In the Design stage, you define the key metrics to be monitored, evaluate the need for any data manipulation, choose the right visualizations and filters needed, and create a wireframe of the dashboard to organize the various components.
Defining the metrics
The primary metrics relevant for measuring customer churn are the customer churn rate and revenue churn rate. You want the customer churn rate to be as low as possible and the revenue churn rate to be a negative value. A negative revenue churn implies a gain in revenue despite a non-zero customer churn owing to new customer acquisitions and upgrades from existing customers.
A simple way to compute customer churn at a monthly level is as follows:
The monthly churn rate can be extrapolated to an annual or longer period using the following formula:
Here, N = the number of months
Revenue churn provides another lens to look at the health of the customer...