Churn Rate

Churn Rate – the churn rate is the percentage of subscribers to a certain service that cancel their service in a given time period.  The churn rate is important to certain industries because of strict competition.  The higher the charm rate, the more available potential customers are available.  An example of a churn rate is as follows.  A cable television company has 2 for every 20 subscribers discontinue their service after a year.  The churn rate would be 10 percent ((20 divided by 2)   The churn rate gives insight to the company, regarding increases or decreases in subscribers and also how long they stay subscribed