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.
References in periodicals archive ?
On the whole, churn rates are aligned on postpay globally as well as across MEA region.
Comparing churn rates between operators and countries where habits and culture are different is also tricky.
This report combines a range of statistics such as revenue per operator, revenue market share, ARPUs, churn rates as well as forecasts that are crucial to the pay TV suppliers.
We also cover Softbank's operational performance such as churn rates, subscriber growth, handset replacement rates, sales incentives, and capex.
Eschelon's previous record low churn rate was achieved in the third quarter of 2005 at 1.
With this combined SMS solution, mobile operators can earn incremental revenue, lower their subscriber churn rate and more importantly, provide an exciting new interactive mobile experience for both 2G and 3G subscribers," said John Orlando, chief marketing officer for NMS.
Our improvements in operations have resulted in better customer service, reduced bad debt and a lower churn rate.
The highly competitive mobile phone market in Europe has encouraged a rising churn rate among customers signaling the end of the high-margin days of the mobile phone operators.
This latest innovation brings enhanced support to TV operators worldwide in their mission to reduce churn rates.
High churn rates have made growth more difficult and costlier for America Online lately.
This 16-page report looks at the development of churn rates in highly prepaid markets in Africa and developing Asia.