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When does a churn number hold (not wiped out by a reconnect)?

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User BJ Patel
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1 Answer

4 votes

Final answer:

A churn number holds when a customer's service cancellation is considered final and they do not reconnect within the company's defined churn tracking period, ensuring the number reflects true customer attrition.

Step-by-step explanation:

To understand when a churn number holds and is not wiped out by a reconnect, we first need to clarify what churn means in a business context. Churn refers to the number of customers or subscribers who stop using a company's services within a given time period. Specifically, a churn number holds when the user's cancellation of service is considered final, meaning they do not resume services by reconnecting within the tracking period. For most businesses, if a customer cancels their service but then reconnects within a certain time frame, often dictated by the company's churn policy, that customer's initial cancellation may not be counted in the churn rate calculation. Thus, the churn number reflects a more accurate attrition rate over time without distortion from short-term disconnections.

answered
User Michael Abeln
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8.1k points
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