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Churn

The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. For a company to expand its clientele, its growth rate (measured by the number of new customers) must exceed its churn rate. Churn can also be calculated on net revenue, meaning that you can lose customers, sell more to retained customers, and achieve a positive net revenue churn.

The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. For a company to expand its clientele, its growth rate (measured by the number of new customers) must exceed its churn rate. Churn can also be calculated on net revenue, meaning that you can lose customers, sell more to retained customers, and achieve a positive net revenue churn.