Churn rate

Churn rate (sometimes called attrition rate) is a measure of the proportion of individuals or items moving out of a group over a specific period. It is one of two primary factors that determine the steady-state level of customers a business will support.[clarification needed]

Churn is widely applied in business for contractual customer bases. Examples include a subscriber-based service model as used by mobile telephone networks and pay TV operators. The term is often synonymous with turnover, for example participant turnover in peer-to-peer networks. Churn rate is an input into customer lifetime value modeling, and can be part of a simulator used to measure return on marketing investment using marketing mix modeling.[1] The term comes from the image of agitation of cream in a butter churn.

  1. ^ "Customer Churn Rate: Definition, Measuring Churn and Increasing Revenue". ReSci. 2014-10-30. Retrieved 2017-06-08.