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:: COMPARE ::

ChurnvsNetwork effect

The short answer

Network effects raise the value of staying; churn measures how many leave anyway. A genuine network effect should show up as low VOLUNTARY churn — if it doesn't, the network effect is a story rather than a mechanism.

Side by side

AspectChurnNetwork effect
MeasuresDeparturesValue of staying
DirectionOutIn
ObservableDirectlyInferred
RelationshipOne tests the other

Which one you meant

Readers who land here meaning Churn rather than Network effect are usually searching for phrases like “what is churn rate”, “how to calculate churn”, “voluntary vs involuntary churn”.

Churn

  • what is churn rate
  • how to calculate churn
  • voluntary vs involuntary churn
  • what is a good churn rate

Network Effect

  • what is a network effect
  • metcalfes law explained
  • network effect examples
  • is metcalfes law wrong

Which came first

Network effect. 1908 — Theodore Vail, the first post-patent president of a telephone company, argues the case in the annual report while advocating for a telephone monopoly.

  1. 1908Network EffectTheodore Vail, the first post-patent president of a telephone company, argues the case in the annual report while advocating for a telephone monopoly.
  2. 1990s onwardChurnChurn becomes a core operating metric in contractual industries: telecoms, subscription media, software and utilities.

Read either one in full