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Average Revenue per Churned Subscription = [(Cancellation MRR)/(No. of Churned Subscriptions)]
Average Revenue per Churned Subscription = [(Cancellation MRR)/(No. of Churned Subscriptions)]
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What is Average Revenue per Churned Subscription metric in RevenueStory?
What is Average Revenue per Churned Subscription metric in RevenueStory?
Average Revenue lost per Churned Subscription.
Explanation of metric
Point in time indicator of Revenue lost per Churned Subscription during the period
How it's measured
Average Revenue per Churned Subscription = [(Cancellation MRR)/(No. of Churned Subscriptions)]
Note: Cancellation MRR = Total MRR of Churned Subscriptions during a period.
Cancellations within the same period of Activation are not considered.
Reading
Down: Good
Interpretation
- Inactive or lost Customers (Churn) impact MRR and ARPU. If this number is high, make sure to keep Churn low otherwise it would impact the Average Revenue on a larger scale.
- Example: In a given period, 15 Customers from Plan A ($10/month) and 25 Customers from Plan B ($20/month) unsubscribe.
Average Revenue per Churned Subscription would be calculated as:
Cancellation MRR = (15X10)+(25X20) = $650
No. of Churned Subscriptions = (15+25) = 40
Average Revenue per Churned Subscription = 650/40 = $16.25
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