This spreads out the total number of customers across the period, which is better, but it still presents a problem if things are growing quickly. If you have 100 customers at the start of the month, and 10,000 at the end, this formula assumes you have 5,050 customers in the middle of the month — which you don’t, if you’re on a hockey stick. Most of your new customers come in the later part of the month, so an average won’t work. What’s more, most of your churns will, too.
