• The churn rate measures the loss of subscribers by a company over a period of time.

  • Churn rates can apply to subscription-based businesses as well as the number of employees leaving the firm. – Churn rate and growth rate are diametrically opposed factors as the former measures customer loss and the other measures customer acquisition.
  • For a company to experience growth, it must ensure that its new subscriptions are higher than its lost subscriptions over a given period.
  • Each industry will have its own average churn rate that companies can compare themselves to to understand their competitiveness.