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.

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Comparing churn rates between operators and countries where habits and culture are different is also tricky.

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This latest innovation brings enhanced support to TV operators worldwide in their mission to reduce churn rates.

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High churn rates have made growth more difficult and costlier for America Online lately.