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Post by account_disabled on Dec 29, 2023 22:17:44 GMT -6
Number of active customers in a given period . For example let's look at telecommunications companies in Portugal. According to ANACOM the telecommunications regulatory entity at the end of the st quarter of the number of subscribers to service packages was . million. Using global data on telecommunications package subscribers in Portugal as an example and applying fictitious data on customer abandonment we will show how the Churn Rate is calculated. Churn rate number of customers who canceled in a given period total number of customers at the beginning of the period x Example Churn Rate fictitious Phone Number List number x Churn Rate . … x Churn Rate . Example Churn Rate fictitious number x Churn Rate . … x Churn Rate . This means that in example . of the total subscribers canceled the service while in example. The total subscribers canceled the service. How important is the Churn rate The churn rate is an important indicator for companies because if on the one hand the Churn rate is low as in example compared to previous periods it could mean that the company is applying the appropriate strategy to retain the clients.
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