what does a high churn rate mean 
a high churn rate indicates that a business is losing significant customers certainly more than it is bringing in this would mean that the business is doing something wrong whether that be delivering a poor product having poor customer service or a host of other negative reasons that would explain why it is losing customers fast a high churn rate would most likely mean a company is suffering significant losses the bottom linechurn rate is a calculation that shows the percentage of subscribers of a business that are leaving it can also be used to show the percentage of employees that are leaving a firm understanding a company s churn rate is one metric in understanding its financial health and its long term prospects companies with high churn rates are losing a large number of subscribers resulting in little growth which significantly impacts revenues and profits companies with low churn rates are managing to retain customers understanding the churn rate of your company will also shed light on how your business is operating whether you are providing a quality product matched with good customer service or whether your business needs improvements to lower its churn rate 