Churn Rate Law and Legal Definition

Churn rate is also called attrition rate. It is one the factors that determine the level of customers a business will support. In its broadest sense, churn rate is a measure of the number of individuals or items moving into or out of a collective over a specific period of time. For instance, it is an important factor for any business with a subscriber-based service model, including mobile telephone networks and pay TV operators. In such cases, churn rate is the percentage of customers (e.g., cellular telephone subscribers) that cancels their service per month.