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 ?
Low churn rates mean fewer workers are moving to jobs that better utilize their skills, which in turn can lower productivity for companies and stall wage growth for individuals.
On the whole, churn rates are aligned on postpay globally as well as across MEA region.
Despite the continuous growth in subscriber additions, mobile churn rates have spiralled upward in developed economies over the last few years.
For example, the main trend for churn rates in developing prepaid markets, such as many in Africa and Asia, is upward, driven predominantly by the arrival of new entrants.
18% churn rate in Q1 -- the percentage of customers who disconnect their service in a given period of time -- well below the industry average.
Fitch believes that the offering of bundled services under the same invoice, increases the competitive position of Cablemas, helps retain customers by increasing loyalty and reduce churn rates.
According to the most recent earnings announcements issued by the nation's largest wireless carriers, churn rates were as follows:
Fitch believes that a more competitive multi-channel video distribution market can lead to higher subscriber churn rates subscriber acquisition costs, and pressure on the company's ARPU.
The company's performance outshines the other three carriers, which reported higher churn rates ranging between 2.