What is the origin of the word "churn" and can you give an explanation for how/why we use it in relation to customer loyalty?

    Requires Free Membership to View

Churn is another term for customer turnover, or defection, from a supplier; but, it's also used to represent 'turnstile', 'revolving door' or 'leaky bucket' customer flow, where there's continual pressure on Sales to maintain a flow of new customers (i.e. acquisition) because there is an equal, or greater, flow of customers who are lost. Churn, turnover, defection, or loss - your choice of words - typically occurs because the original supplier has provided an insufficient level of value, as perceived by the customer; and the customer elects to find another supplier more suited to his/her needs.

The term has been applied within the marketing community for decades, so far as I'm aware. It's most prevalent use is in industries like retail, telecom, and banking/financial services.

For more information, read my "Lessons in Loyalty" column:"Model modelers in predictive churn"

This was first published in July 2002

There are Comments. Add yours.

 
TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to: