Churn Rate is the percentage of subscribers who discontinue a particular service each month.
Churn Rate is the important matrix which is closely followed by a Telecommunication industry. On the basis of churn rate, the company device its strategy and decides the policy for the next quarter.
Churn Rate also plays an important role for the investors of the Telecom Companies. Investors get the information of Churn Rate from the Financial Results of the company and on that basis the share price of the company behaves.
Churn rates are closely tracked in industries such as Telecommunications and Cable Television . A high churn rate means that a company loses a large percentage of its subscribers each month. All else equal, a low churn rate is considered to be best. A high churn rate can indicate a number of aspects including service quality and the type of customer the company attracts.
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