[MUD-Dev] [BIZ] Defining 'churhn' in relation to MMO games

[Tom]

Hello,

  I'm among the speakers at next month's ELSPA conference on online
  games in London, and whilst preparing my presentation, some
  examples that discuss 'churn' started throwing up some odd results
  when different models were applied to the figures.

  Which got me to thinking about churn itself when applied to MMO
  games. So here's a question for everyone:

    How do you define churn?

  Personally I view churn as the percentage of the subscriber base
  as a whole who leave during a set period. For example, if you have
  1,000 subscribers, and 20% churn, this means that 200 of those
  subscribers will leave in the given period.

  There are other, more esoteric methods of defining what churn is
  such as one that uses a formula to define churn based on the average
  length a customer remains a subscriber in terms of months, then uses
  this to define a yearly churn value.

  So how do you define it? How do you fit it into your business
  models? What does churn mean to you?

Tom Gordon
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