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Churn Rate
(redirected from Churn rates)

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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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Financial services firms and health care organizations were the most susceptible to customer attrition following a data-loss incident, experiencing churn rates of 5.
The focus on service and support, says Rackspace, illustrates why customer churn rates in the web hosting sector are high.
High churn rates have made growth more difficult and costlier for America Online lately.
 
 
 
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