Hi Niedz
Customer "churn" is simply a term for customers who leave one service provider for a competing provider. Incentives for changing providers might include: poor service, desired product features, a lower price or an attractive promotion offered by the competition, etc. "Churn" could probably be replaced with "turnover" if that term makes more sense for you.
Cellular providers have very high churn rates, in particular. If you are a typical cellular service provider in the U.S., you are losing about 28% of your customers a year to a competitor. You may be winning just as many new customers in that year, thereby making up for the customer loss, but winning new customers comes at a great expense (marketing costs, sales commissions, promotions costs, administrative work, etc.). Lightbridge sells products that are designed to lock in customers (new and old), thereby reducing churn. Note how many wireless providers have already signed up for the service.
Anyway, I hope this explanation was helpful.
Good luck,
Bruce |
