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churn rate

Show me everything on Customer loyalty

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Churn rate is a measure of customer or employee attrition, and is defined as the number of customers who discontinue a service or employees who leave a company during a specified time period divided by the average total number of customers or employees over that same time period. For example, churn rate has been an ongoing concern of telephone and cell phone services in areas where several companies compete and make it easy to transfer from one service to another.

Changes in a business' churn rate can provide feedback for a company as it may indicate customer response to service, pricing, competition and so on, as well as the average length of time an individual remains a customer. As such, churn rate is an important business metric. To estimate future churn rates, predictive technology is sometimes applied, in a process known as predictive churn modeling.

Learn more about Customer loyalty

  • Building customer loyalty: Four tips in four minutes
    Tutorial  - Use these tips from Paul R. Timm's book "Technology and Customer Service: Profitable Relationship Building" to learn how to build customer loyalty with common technology tools: the call center, help...

    last updated06 Feb 2007

  • How to build customer loyalty
    Learning Guide  - Learn how to build customer loyalty and get tips for building a customer loyalty strategy in this section.

    last updated09 May 2007

  • Customer loyalty case studies and industry-specific strategies
    Learning Guide  - This section of the Customer Loyalty Learning Guide provides a look at other businesses that have implemented customer loyalty programs and examines innovative strategies and industry-specific...

    last updated09 May 2007

  • Customer loyalty through employee retention
    Ask the Expert  - Learn how employee retention can positively impact customer loyalty in this expert tip from marketing guru Michael Lowenstein.

    last updated11 Aug 2006

  • The top 10 customer experience questions
    FAQ  - Read our list of the top ten customer experience questions from expert Lior Arussy. Learn about customer experience mapping, the chief customer officer position and more.

    last updated09 Mar 2009

  • How to improve the customer experience in 10 steps
    Special Report  - Learn how to improve the customer experience with these ten customer experience initiatives any company can implement immediately.

    last updated01 Mar 2009

  • Understanding customer commitment
    Chapter Download  - Research shows that there are three forms of customer commitment: relational commitment, instrumental commitment and value-based commitment. In this chapter, learn about all three types of customer...

    last updated11 Nov 2008

  • Customer retention management
    Chapter Download  - Most experts will tell you that retaining a customer is easier (and more cost-effective) than aquiring a new one. Because of this, it's important that all companies have established customer...

    last updated11 Nov 2008

  • Customer retention vs. value retention
    Chapter Download  - Studies have shown that many customers are more likely to change their buying behavior than they are to defect. Because of this, it's important that companies not only manage customer retention, but...

    last updated11 Nov 2008


last updated09 Dec 2003


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More resources from around the web:

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Michael Lowenstein's article looks at "Model modelers in predictive churn."
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Barney Beal's SearchCRM.com article is about "The new churn concern."

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