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 ?
This slight decline follows two consecutive quarters in which the churn rate increased.
For coal the volume of derivatives traded last year was 1.2 billion tonnes, compared with Atlantic physical trade of 220 million tonnes, giving a churn rate of around 5.5.
'Here in South Wales we are continuing to grow our customer base and as a result of significant improvements to our customer service, our churn rate [the number of customers leaving the service] continues to fall.
Customer loyalty scores have a direct impact on operator profitability and churn rate, so ensuring they stay high is vital.
By the end of 2009, it had over 1 million lines in services and reports a customer churn rate of less than 1.3%.
The so-called churn rate - the proportion of customers deserting the company - fell to 13% compared with 17.2% at the same time last year.
Levitt said the study may show, for example, that a 100,000-circulation paper with a 60% churn rate, compared to a group average of 50%, could real-locate funds into other programs to reduce the percentage, saving $115,000 a year.
Similarly, the company's churn rate, as measured by contracted sales/gross debt, will likely fall below the 0.6x downgrade threshold.
The rapid growth and strength of the business was also reflected by a very high renewal rate and an extremely low customer churn rate.
The satellite broadcaster reported an inflated churn rate of 11.9 per cent in its second quarter results to the end of December, up from 11.8 per cent on the previous quarter and well above the company's ten per cent.
M2 EQUITYBITES-August 14, 2014-Partner Communications notes slight decrease in churn rate
In addition the company said that the annual total churn rate as of 31 December 2006 increased to 14.7%, as compared with 10.1% on 31 December 2005.