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 ?
Johan GE[micro]rsjE[micro], director of product management at Agama, said: "Proactively working to reduce churn rates by automatically identifying customers at risk, and of course the issues behind their problems, is a high-potential opportunity for all TV operators.
On the whole, churn rates are aligned on postpay globally as well as across MEA region.
Comparing churn rates between operators and countries where habits and culture are different is also tricky.
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.
Table 6 - Pay TV industry annual churn rates - 1996 - 2007
The offering a fixed-mobile service should help the company to retain fixed lines as they mature and reduce churn rates in the wireless business as penetration approaches to a mature stage.
0% customer line churn rate; 3) An increasing penetration of Business Telephone Systems (BTS) sales in our base of customers - in the case where a customer takes Network Services products and BTS, customer line churn rates of <.
The handset subsidies and sales commission contribute to very high churn rates, reaching 30 percent, but do not add to service revenue growth, putting pressure on profit margins.
Facilities teams worldwide will have the ability to run real-time reports on key metrics such as churn rates, space utilization, and space chargebacks.
This is due to a slowdown in policy churn rates, slowdown in the growth of the mortgage market and a pick-up in sales of investment.