For this slide we are trying to establish the monthly churn rate for a business. We calculate this from a data frame that has customers and their start and end dates. What I dont understand is that it seems that DQ is asking us to simply use the end date listed and consider that a churned customer, but, for example, customer 7108 had a monthly subscription for one month, and then upgraded to an annual subscription. It seems like at the end of that one month subscription person 7108 gets counted as a churned customer, when in fact they have upgraded their membership. Or if there was someone that simply had a membership for a year, but on a monthly basis, they would be counted as churned 12 times. What am I missing here? Thanks
That is a really good observation and analysis.
I think the subsequent Mission Steps, also hinted at in Step 9, start to take this into account indirectly when looking at scenarios that were affected by the promotions that were run - such as customers changing from a monthly to a yearly plan.
So, yes, accounting for that instance you talk about could be important to get a more accurate idea of the churn. That’s why picking the right metric is important (and difficult at times).
I would recommend that you also do an analysis by taking your findings into account and share with us!