Analytics
Subscription Metrics
Monitor subscription health with metrics like MRR, churn, and active customers.
Subscription metrics are essential for understanding the health and growth of a recurring revenue business. Tracking these metrics helps identify trends in customer behavior, optimize pricing, and reduce churn, ensuring sustainable revenue growth.
Key Subscription Metrics
Monthly Recurring Revenue (MRR)
The total predictable revenue generated per month from all active subscriptions.
Annual Recurring Revenue (ARR)
The total predictable revenue generated annually.
Customer Churn Rate
The percentage of subscribers who cancel their subscriptions over a given period.
Revenue Churn
Measures the recurring revenue lost due to cancellations or downgrades.
Customer Lifetime Value (CLV)
The estimated total revenue from a subscriber during their relationship with your platform.
Active Subscribers
The number of customers with active subscriptions at any given time. This helps monitor growth and retention.
Upgrade/Downgrade Metrics
Track when customers switch between plans:
Upgrades: Increase in subscription level or fee.
Downgrades: Decrease in subscription level or fee.
Example Metrics Table
Metric | Value | Change (MoM) |
|---|---|---|
MRR | $25,400 | +5% |
ARR | $304,800 | +5% |
Customer Churn Rate | 3% | -1% |
Revenue Churn | 2% | 0% |
Active Subscribers | 1,200 | +50 |
Upgrades | 45 | +10 |
Downgrades | 12 | -2 |
Tips for Using Subscription Metrics
Monitor Trends Over Time: Analyze monthly and yearly changes to anticipate growth or decline.
Segment Subscribers: Track metrics by plan type, customer location, or acquisition channel for deeper insights.
Optimize Retention Strategies: Use churn data to implement campaigns that reduce cancellations.
Forecast Revenue: Leverage MRR and ARR trends to predict future revenue and resource allocation.
Subscription metrics provide actionable insights for decision-making. Consistently tracking these metrics allows you to respond proactively to changes in customer behavior, revenue patterns, and overall business health.