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Transaction turnover is the number of transactions (sales) within a period of time. You can either count the total receipts or the revenue figure.
Customer turnover is how many customers you have within a period of time.

2006-09-22 06:32:16 · answer #1 · answered by economiss 5 · 0 0

Customer turnover has several interpretations depending on the industry, usually focusing at the issue of loosing customers, as a yardstick to determine customer base; customer attrition; identifying which customers to keep:

Banks:
Percentage of customers who do not renew their loans in a given period;

Retail:
Cost to attract a new customer over retaining existing ones, formulae dependent on company;

Number of customers leaving the customer base divided by the total customers to date (monthly, quarterly, yearly).

Excerp:
Churn, which measures customer turnover, is calculated as the
net number of customers that disconnect from our service
divided by the weighted average number of customers, divided
by the number of months during the period being measured.
Customers who do not pay their first monthly bill are deducted
from our gross customer additions.

Throughflow: (Human Traffic that goes through the shop)
Number of customers induced to enter the shop divided by the median number of customers who stops to shops to date (weekly, monthly, quarterly, yearly) or over a period of time

Transaction: How much sales is required before a $ of revenue is generated. Sales receipts over revenue (profit), eg. $500 sales to $100 revenue means for every $5 of sales, a dollar is earned.

The numerator and denominator are not fixed. It depends what you want to find out and there is no real fixed formulae: ask your company.

2006-09-22 16:02:13 · answer #2 · answered by pax veritas 4 · 0 0

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