does not differentiate between startups growing and mature companies
example of the churn ratethe churn rate is a particularly useful measurement in an industry like the telecommunications industry this includes cable or satellite television providers internet providers and telephone service providers landline and wireless service providers this is an industry in which most customers have multiple providers from which to choose and the cost of switching between them isn t high this means that church rates could be quite high the churn rate helps a company determine how it is measuring up to its competitors for example say in a quarter a startup internet provider acquired 1000 new subscribers in that same quarter the company also lost 120 subscribers the churn rate would be the startup could then use this number in a few different ways employment churn rateemployee turnover within a business can also be measured with the churn rate as it provides a method for analyzing the company s hiring and retention patterns this can be especially helpful if overall employee longevity within a company is low 