AT&T: Churn Rate 2020

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This article discusses AT&T’s Churn Rate 2020. Churn rate is the percentage rate at which users stop using a company’s business, within a given period. It is also known as the rate of attrition or customer churn.
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By Sankul Iyer

AT&T’s churn rate

This article discusses the statistics on AT&T Churn Rate 2020. Churn rate is the percentage rate at which users stop using a company’s business, within a given period. It is also known as the rate of attrition or customer churn. It is computed as follows:

churn rate(%) = (users at the beginning of the period – users at the end of the period) /users at the beginning of the period

Importance of tracking AT&T churn rate

Churn rate is a very important metric within a subscriber based business such as the telecommunications industry. A high churn rate could adversely affect profit and suppress growth. Many factors could cause a high churn rate such as high cost, poor customer interface, and stiff competition among others. In addition to identifying such problematic issues, churn rate also helps in finding out customer lifetime value and the customer retention rate.

Analysis of performance of AT&T based on churn rate

AT&T’s postpaid subscription, coupled with other mobile devices had an increase in churn rate from 1.08% in Q2 FY 2019, to 1.19% in Q3 FY 2019. Since the second quarter of FY 2016, the highest quarterly customer churn experienced by the company in the above segment, was of 1.24% during the last quarter of FY 2018. In Q4 FY 2017, this figure stood at 1.11%, while in the year before that, it was 1.15%. The lowest churn rate over the past 3 years occurred in Q2 FY 2016, totaling 0.97%. The highest rise in churn rate took place from the second to the third quarter of 2018 by 0.15%.

The postpaid subscription with an AT&T device, had a lower churn rate of 0.95% in Q3 FY 2019. However, this was also an increase from the 0.86% reported in Q2. This particular segment has reported a quarterly attrition rate below 1% for over 2 years now, save for losing exactly 1% of customers during the last quarter of fiscal year 2018. This also happened to be the highest attrition rate for the company over the same period. The lowest customer churn for the multinational conglomerate was of 0.79% during the second quarter of 2017. This quarter also marked the most reduction in churn rate of 0.11%, from the previous quarter.

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