Common
Churn rate
Measure of individuals moving out of a group
Churn rate
Churn rate (also known as attrition rate, customer turnover, or customer defection) is a metric that measures the proportion of individuals (e.g. employees), customers, or items that leave a defined group during a specified period of time. In business and economics, it is commonly used to assess customer retention and the stability of recurring-revenue models, particularly in subscription-based or contractual services. Churn rate is widely applied in industries with contractual customer bases, such as telecommunications, subscription media services, software-as-a-service (SaaS), and utilities. It is a key input in customer lifetime value (CLV) modeling and is often used to evaluate marketing effectiveness and long-term revenue sustainability. The term originates from the analogy of agitation in a butter churn, reflecting continuous customer movement in and out of a service base.
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