Churn Rate


[[Churn]] rate is a [[metric]] that is calculated by dividing the number of churned [[customer]]s by the total number of remaining customers. In order for companies to grow and increase the number of their customers, it is crucial to retain (See [[Retention]]) their current customers.

For example, if a company has 200 customers and 3 customers that have churned during a specific period of time (usually reported daily, monthly and yearly), then the Churn Rate of this company will be 3/200= %1,5. This metric is especially important for companies operating in sectors that offer easy [[subscription]] models such as pay tv (Netflix, HBO, etc.), internet and mobile network providers.

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