Churn Rate

Churn rate — also called customer attrition rate or customer churn — is a business metric that measures the percentage of customers, subscribers, or users who stop using a company's product or service within a defined period, typically calculated monthly or annually as: (Customers Lost During Period ÷ Total Customers at Start of Period) × 100. High churn rate is a critical warning signal for subscription-based, SaaS, telecom, and financial services businesses — indicating poor customer experience, weak product-market fit, or competitive pressure — while low churn signals strong customer loyalty and recurring revenue visibility. In financial services, churn manifests as account closures, policy lapses (in insurance), AUM redemptions (in mutual funds), and client attrition (in broking and wealth management). For investors on Ventura Securities evaluating listed Indian telecom companies, insurance firms, fintech platforms, and subscription businesses, churn rate analysis is a foundational customer economics metric that directly drives revenue retention, customer lifetime value (LTV), and the long-term sustainability of recurring revenue business models.