What is the formula used to calculate churn in a business context?

The formula for calculating customer churn in a business context is represented by the ratio of Total Customers Lost to Total Customers. This metric provides vital insights into customer retention and attrition, which are critical for managing business growth and sustainability.

By using this formula, businesses can effectively track the percentage of customers that stop using their service or product over a specific timeframe. This understanding allows organizations to implement strategies to improve customer satisfaction and enhance retention efforts.

The other choices relate to physics equations, which are not applicable to customer churn calculations. Thus, focusing on the correct churn formula yields valuable business intelligence that aids in decision-making and strategic planning.