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 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.