Codermetrics

Name

Loss Rate

Synopsis

Purpose

Determine the average amount of time it takes to accumulate each loss.

Formula

Loss Rate = (Time Elapsed / Losses)

Example

A new software release is issued at the end of June. The following user deactivations or cancellations (Losses) are recorded for the three months following release:

Month of July: 18 deactivations or cancellations

Month of August: 13 deactivations or cancellations

Month of September: 24 deactivations or cancellations

Assume that you want to calculate Loss Rate in term of hours and minutes, which means that you want to determine how many days and hours on average between each Loss. The calculation can be performed as follows (results are rounded):

Loss Rate in July (month with 31 days) = 31 / 18 = 1 day 17 hours

Loss Rate in August (month with 31 days) = 31 / 13 = 2 days 9 hours

Loss Rate in September (month with 30 days) = 30 / 24 = 1 day 6 hours

Average Loss Rate (all months) = (31 + 31 + 30) / (18 + 13 + 24) = 1 day 16 hours

You can calculate different time increments with simple conversions:

Loss Rate of 18 hours = Loss Rate of .75 days

Notes

Loss Rate is the parallel metric for Win Rate, providing another way to measure and analyze Losses by calculating on average how long it takes to accumulate each Loss (user deactivation, cancellation, suspension of use, or the like). Loss Rate is equivalent to the “mean time between Losses.”

As with Win Rate, I like the Loss Rate metric because I believe that people have a stronger appreciation for the time ...