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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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She admitted that in common with the call centre industry as a whole, the Listening Company had experienced a high churn rate of staff during its first year in the North East.
Carphone said the churn rate improved as the quarter progressed after it stepped up customer retention efforts.
Financial services firms and health care organizations were the most susceptible to customer attrition following a data-loss incident, experiencing churn rates of 5.
 
 
 
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