What is a Churn Rate? Definition or Meaning

Customer loyalty is one of those things you wish you could keep forever, don’t you? Sadly, customers who have signed-up to your subscription-based service do change their mind. You then lose their patronage, or they have ‘churned’. One formula for calculating churn rate is number of customers lost in a quarter divided by number at the start of the quarter times 100.

For example…

Take an Internet Service Provider. If they had 200 customers at the beginning of the quarter but lost 30 during that quarter, that’s a churn rate of 15%.