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Churn Rate

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Churn Rate
The rate at which customers terminate their relationships with a company over a given period of time. For example, if five customers in 50 discontinue their cable every month, the churn rate is 5%. The church rate contrasts with the growth rate, which, in this case, is defined as the number of new clients or customers. If a company is to grow, the growth rate must consistently exceed the churn rate. The churn rate is important in the telecommunications industry, where several companies operate in a geographical area and compete for customers.


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SprintNextel's inability to hold onto its subscribers, as evinced by its terrible churn rate compared to other US carriers, may finally be at an end.
The highly competitive mobile phone market in Europe has led to a rising churn rate among customers, signalling the end of high-margin days for mobile phone operators.
Stemmler continued, "We expect a positive impact on our churn rate, new customer growth rate, and total customer satisfaction.
 
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