Investor Glossary-churn rateInvestor Glossary-churn rateInvestor Glossary-churn rateInvestor Glossary-churn rateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Churn Rate

The HTML to link to this page
 

Churn rate is a measure of customer attrition. The churn rate is defined as the percentage of customers who stopped doing business with a company in a period divided by the average number of customer existing in that period. Churn rate is a useful business metric for any subscription based or other account driven service, such as a credit card issuer or mobile phone provider. The year, quarter, and month are common churn rate periods. The churn rate can be computer for a firm's entire customer base or individual customer segments. If the churn rate exceeds the growth rate of new accounts, the number of customers falls. An increase in churn rate can indicate a decline in competitiveness. Companies often develop customer retention strategies to reduce churn rate, particularly for the most profitable customer segments. For expample, if an ISP has 1,000,000 subscribers in the quarter, and 30,000 discontinue service that quarter, the churn rate is 3%.



Rate this churn rate definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use