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Average Revenue per Paid Subscription 

The average recurring revenue earned from each active paid subscription during a specific period.

Explanation of metric

This metric tracks the revenue generated from each paid subscription and is used to gauge the overall financial health of a subscription-based business. It can also be referred to as Average Revenue Per Account (ARPA) or Average Revenue Per Unit (ARPU). By monitoring ARPPS, businesses can assess the effectiveness of their pricing and plan structure.

How it's measured

Average Revenue Per Paid Subscription (ARPPS) = (Total MRR) / (Number of Active Paid Subscriptions)

Note

Subscriptions that use a 100% discount coupon are excluded from this calculation.

Reading

An increasing ARPPS indicates higher earnings per customer, boosting total MRR without the need to acquire new customers.

Interpretation

An increase in ARPPS directly raises total MRR, helping businesses grow revenue without expanding their customer base. It can reflect the successful implementation of strategies such as price increases, premium service offerings, or encouraging customers to move to higher-tier plans.

Example

In a given period, 200 Customers are on Plan A ($10/month), and 300 Customers are on Plan B ($20/month)

Plan A: 200 customers at $10/month

Plan B: 300 customers at $20/month

Total MRR = (200X10)+(300X20) = $8,000

Number of Active Paid Subscribers = (200+300) = 500

Average Revenue Per Paid Subscription = 8000/500 = $16.00


Average Revenue per Paid Subscription by Country 

The average recurring revenue earned from each active paid subscription, segmented by country.

Explanation of metric

This metric provides insights into how much revenue is generated per paid customer in each country. It helps businesses assess the effectiveness of their pricing and customer value in different regions. ARPPS by Country is synonymous with Average Revenue Per Account (ARPA) or Average Revenue Per Unit (ARPU).

How it's measured

Average Revenue Per Paid Subscription by Country = [(Total MRR)/ (Number of Paid Subscriptions per Country)]

Note

Includes MRR from the beginning of the last year.

Reading

An increase in ARPPS by Country indicates higher earnings per customer in that country, reflecting a healthy customer base and pricing strategy.

Interpretation

High ARPPS in a country signifies that customers in that region derive significant value from the product or service. This metric should be observed alongside the Customer Lifetime Value (LTV) for a deeper understanding of long-term customer engagement and revenue potential in specific regions.

Example

In a given period, 200 Customers are on Plan A ($10/month), and 300 Customers on Plan B ($20/month) are from the same Country.

Country: U.S.

Plan A: 200 customers at $10/month

Plan B: 300 customers at $20/month

Total MRR = (200X10)+(300X20) = $8,000
Number of Active Paid Subscribers = (200+300) = 500
Average Revenue per Paid Subscription by Country = 8000/500 = $16.00


Average Revenue per Paid Subscription by Acquisition Channel 

The average recurring revenue earned from each paid subscription, segmented by acquisition channel.

Explanation of metric

This metric breaks down the revenue earned per paid subscription based on the channel through which the customer was acquired.

Note

This metric is only available with RevenueStory (RS) premium. To utilize this metric effectively, a custom field must be configured at the Customer resource level in Chargebee and mapped to the acquisition channel. This custom field can be tailored to your business needs, but meaningful values should be used for accurate analysis. For assistance, reach out to your Customer Success Manager or contact support .

How it's measured

Average Revenue per Paid Subscription by Acquisition Channel = [(Total MRR)/ (Number of Paid Subscriptions per Customer Acquisition Channel)]

Reading

An increase in ARPPS by Acquisition Channel indicates that customers acquired through a specific channel are generating higher revenue, reflecting the effectiveness of that channel.

Interpretation

This metric helps assess the average revenue generated from paying customers by acquisition channel. It provides a clear understanding of which channels are most effective in generating revenue and helps guide investment decisions. A higher ARPPS from a particular channel indicates strong revenue performance from customers acquired through that source.

Example

In a given period, 200 Customers are on Plan A ($10/month) and 300 Customers on Plan B ($20/month) acquired through Channel 1.

Acquisition Channel: Channel 1

Plan A: 200 customers at $10/month

Plan B: 300 customers at $20/month

Total MRR = (200X10)+(300X20) = $8,000
Number of Active Paid Subscribers = (200+300) = 500
Average Revenue per Paid Subscription by Acquisition Channel (Channel)

= (8000/500) = $16.00


Average Revenue per Paid Subscription by Customer Type 

The average recurring revenue earned from each paid subscription, segmented by customer type.

Explanation of metric

This metric shows the average revenue earned per paid subscription for different customer types. It is often visualized using a bar chart, where customer types with Monthly Recurring Revenue (MRR) greater than $5K USD are highlighted.

Note

To use this metric effectively, a custom field must be configured at the Customer resource level in Chargebee and mapped to the Sales Agent field in RevenueStory. Custom values can be set based on business needs. For assistance, contact your Customer Success Manager or contact support .

How it's measured

Average Revenue Per Paid Subscription by Customer Type = [(Total MRR)/ (Number of Paid Subscriptions per Customer Type)]

Reading

An increase in ARPPS by Customer Type indicates higher revenue generation from that customer segment, suggesting high value derived from the product or service.

Interpretation

A high ARPPS for a specific customer type indicates that customers within that segment are generating more revenue and likely finding more value in the product or service. This metric, when viewed alongside the Customer Lifetime Value (LTV), can provide insights into the long-term value of those customers. Businesses can focus on strategies to acquire more customers from high-performing segments.

Examples

Example 1 (MRR < $5K USD)
In a given period, 200 Customers are on Plan A ($10/month) and 300 Customers on Plan B ($20/month) belong to the same Customer Type (< $5K USD processed)
Customer Type: Customers processing less than $5K USD

Plan A: 200 customers at $10/month

Plan B: 300 customers at $20/month

Total MRR for Customer Type: (200X10)+(300X20) = $8,000

Number of Active Paid Subscribers: Subscribers = (200+300) = 500

Average Revenue per Paid Subscription (Customer Type)= (8000/500) = $16.00

Example 2 (MRR > $5K USD):
In a given period, 100 customers on Plan X ($50/month) and 150 customers on Plan Y ($100/month) belong to the same customer type. This customer type has an MRR greater than $5K USD.

Plan X: 100 customers at $50/month

Plan Y: 150 customers at $100/month

Total MRR for Customer Type = (100 x $50) + (150 x $100) = $5,000 + $15,000 = $20,000

Number of Active Paid Subscriptions = 100 + 150 = 250

Average Revenue per Paid Subscription (Customer Type) = $20,000 / 250 = $80.00

Lifetime Value of a Paid Subscription 

The average revenue earned from a paid subscription over its lifetime.

Explanation of metric

A trend line illustrates the estimated average revenue generated by a paid subscription throughout the customer's lifecycle. This metric is also available as a point-in-time KPI that shows the average revenue earned per paid subscription over its lifetime, alongside the variance and percentage change in estimated LTV across different periods.

How it's measured

Lifetime Value of a Paid Subscription = [(ARPPS) x (Paid Subscription Lifetime)]

Note
  • ARPPS (Average Revenue per Paid Subscription) = [(Total MRR) / (Number of Active Paid Subscriptions)]
  • Paid Subscription Lifetime: This represents the duration of a subscription until it is canceled. It is typically calculated as the inverse of the churn rate.
  • ARPPS does not include subscriptions recurring with a 100% discount coupon.

Reading

An increase in LTV indicates that the business is retaining customers longer, generating more revenue over the lifetime of subscriptions.

Interpretation

Lifetime Value (LTV) measures a customer's financial worth over the entire period they stay subscribed. This metric helps track and optimize customer acquisition costs by ensuring that the revenue generated over a customer's lifetime exceeds the acquisition and retention expenses. A high LTV suggests that customers find consistent value in the service, leading to long-term relationships.

Example

In a given period,

Total Active Paid Subscriptions: 500

Total MRR: $10,000

ARPPS:
ARPPS = (Total MRR) / (No. of Active Paid Subscriptions)

ARPPS = [(10,000/500)]= $20
If Average Paid Subscriptions Churn Rate = 15%

Paid Subscription Lifetime:

Paid Subscription Lifetime = [(1/15)x100]= 6.6

LTV :

LTV = [(20 x 6.6)] = $132

Thus, the lifetime value of a paid subscription is $132.


Lifetime Value of a Paid Subscription by Business Type 

The average revenue earned from a paid subscription over its lifetime, segmented by Business Type (e.g., E-Commerce, SaaS, Ed Tech).

Explanation of metric

This metric is visualized through a chart that represents the estimated average revenue generated by a paid subscription throughout the lifespan of customers, segmented by different business types such as E-Commerce, SaaS, and Ed Tech.

To leverage this metric, businesses must configure a custom field at the customer resource level in Chargebee and map it to the Business Type field in RevenueStory. This segmentation helps provide insights into the specific performance of different customer groups based on their business model.

How it's measured

Lifetime Value of a Paid Subscription by Business Type = (ARPPS)×(Paid Subscription Lifetime)

Note

To calculate the LTV of a Paid Subscription by Business type. ARPPS and Paid Subscription Lifetime need to be segmented by Business Type as well.

  • Average Revenue per paid Subscription (ARPPS ) = [(Total MRR) / (No of Active Paid Subscriptions)]
  • ARPPS Does not include Subscriptions recurring with a 100% discount coupon
  • Paid Subscription Lifetime = [1/Average(Paid Subscriptions Churn Ratio)] x 100
  • Paid Subscription Lifetime represents the lifetime of a Subscription until it is CANCELLED

Reading

An increase in LTV by business type indicates that the business is retaining customers from that specific segment longer, and generating more revenue over their subscription lifetime.

Interpretation

This metric provides a clear understanding of the lifetime financial value of subscriptions for different business types, such as E-Commerce, SaaS, and Ed Tech. It helps businesses evaluate the revenue potential for each segment and identify which types of customers provide the most long-term value. Combining LTV with the Customer Acquisition Cost (CAC) ratio can also highlight which business types have the most cost-effective customer acquisition strategies.

Example

For a SaaS business during a given period:
Total Active Paid Subscriptions (SaaS): 500
Total MRR (SaaS): $10,000
ARPPS = [(10,000/500)]= $20
If Average Paid Subscriptions Churn Rate = 15%
Subscription Lifetime = [(1/15)x100]= 6.6
Thus, the Lifetime Value of a SaaS Subscription is $132.


Lifetime Value of a Paid Subscription by Customer Type 

The average revenue earned from a paid subscription over its lifetime, segmented by Customer Type.

Explanation of metric

This metric measures the average revenue that a paying customer generates over the lifetime of their subscription, broken down by customer type. It helps businesses understand which customer types are most valuable over the long term.

How it's measured

Lifetime Value of a Paid Subscription by Customer Type = ARPPS X Paid Subscription Lifetime

Reading

An upward trend indicates that customers from certain types are staying subscribed longer and generating more revenue over their lifetime.

Interpretation

This metric helps identify which customer types provide the most value to the business over the long term. Focus on customer types with a high Lifetime Value (LTV), as these customers are likely to be the most profitable.

A critical aspect of this metric is the LTV to Customer Acquisition Cost (CAC) ratio. If the LTV/CAC ratio is less than 1, it indicates the cost to acquire these customers is higher than their value over time, which could signal a problem with profitability in that segment.

Example

In a given period, for Customer Type A:

Average Revenue Per Paid Subscription (ARPPS): $200 per month

Paid Subscription Lifetime: 24 months

LTV for Customer Type A:

LTV=ARPPS×Paid Subscription Lifetime=200×24= $4,800

For Customer Type B:

ARPPS: $150 per month

Paid Subscription Lifetime: 36 months

LTV for Customer Type B:

LTV=150×36= $5,400

In this example, Customer Type B has a higher Lifetime Value ($5,400) compared to Customer Type A ($4,800), indicating that Customer Type B is more valuable over the long term. By focusing marketing efforts on acquiring more customers similar to Customer Type B, the business can potentially improve overall profitability.


Plan Movement Summary 

A Summary of subscription movements from one plan to another.

Explanation of metric

This metric provides a detailed overview of how subscriptions have transitioned from one plan to another within a specified period. It includes information on the previous plan, the new plan, and the number of subscriptions that have changed plans.

Note

This report is available with RS Premium only. To enable this, contact your Customer Success Manager or contact support .

How it's measured

Plan Movement Summary = Total number of subscriptions moved from one plan to another.

Note

This does not include multiple plan changes within a month or changes in the month of activation.

Reading

Typically, the reading itself is not necessarily good or bad. The interpretation depends on the direction and volume of the plan movements.

Interpretation

  • Subscriptions Moving to Higher-Priced Plans: Indicates customer satisfaction and preference for more advanced features or value. This movement is generally positive as it contributes to increased revenue.

  • Subscriptions Moving to Lower-Priced Plans: May indicate dissatisfaction or budget constraints. This movement can signal potential issues with customer retention or product value, contributing to MRR churn.

Example

In a given period:

  • Number of Subscriptions moved from In Trial to Launch Plan: 100
  • Number of Subscriptions moved from Launch to Scale Plan: 45
  • Number of Subscriptions moved from Scale to Enterprise Plan: 75
  • Number of Subscriptions moved from Enterprise to Scale Plan: 10

This summary helps in understanding customer preferences, detecting potential issues with plan satisfaction, and assessing the impact on overall revenue.


Summary of all paid subscriptions based on status.

Explanation of metric

This metric provides a comprehensive overview of paid subscriptions segmented by their status, including upgraded, downgraded, cancelled, paused, or reactivated during a specific period. The data is visualized using a stacked bar chart.

How it's measured

Paid Subscription Summary = Number of paid subscriptions segmented by MRR status and sub status during the period.

Reading

An upward trend in this metric indicates strong customer acquisition, effective retention strategies, or successful upselling.

Interpretation

  • Overall Subscription Health: The Paid Subscription Summary helps assess a business's overall health by indicating how subscriptions are evolving. A positive trend in upgraded and reactivated subscriptions is favorable, whereas high numbers of downgraded, canceled, or paused subscriptions could be cause for concern.

  • Investor Insights: This metric serves as a key indicator for investors to evaluate a business's growth and stability. A growing number of paid subscriptions and successful upgrades can signal a healthy and expanding business.
    Example

In a given period:

Number of Paid Subscriptions: 10,500

Upgraded Subscriptions: 4,000

Downgraded Subscriptions: 2,000

Reactivated Subscriptions: 1,500

Free to Paid Subscriptions: 4,000

Resumed Subscriptions: 3,000

This summary helps in understanding the dynamics of subscription activity and is crucial for evaluating business performance and growth potential.

Percentage of paid canceled subscriptions.

Explanation of metric

This metric represents the percentage of paid subscriptions that were canceled during a specific period. The data is visualized using a bar chart. A point-in-time KPI is also available to compare the current period's churn rate with that of the previous period, showing the percentage change across both periods.

How it's measured

Paid Subscription Churn Rate = [(No of Paid Subscriptions CANCELLED) / (Total No of paid Subscriptions at the beginning of period)] x 100

Note

Cancellations within the same activation period are not considered.

Reading

If this metric shows a downward trend, it indicates a positive outcome, as it reflects a reduction in cancellations or downgrades of paid subscriptions.

Interpretation

  • Business Health: A high Paid Subscription Churn Rate undermines the business's profitability and affects its return on investment (ROI). It indicates that a significant proportion of paid subscriptions are being canceled, which can negatively impact revenue and customer acquisition efforts.

  • Long-term Success Indicator: The churn rate is a critical metric for subscription-based businesses, as it helps in predicting long-term success. Lower churn rates suggest better customer retention and satisfaction, while higher rates may indicate issues with the product or service offering.

Example

In a given period:

Total Active Paid Customers: 600

Number of Paid Subscriptions canceled: 10

Paid Subscriptions Churn Rate = (10/600)x100 = 1.66%

This metric helps in monitoring and improving customer retention strategies to enhance overall business performance.


Total Active Subscriptions 

Total number of active subscriptions including unpaid subscriptions.

Explanation of metric

This metric shows the total number of subscriptions that are in an ACTIVE state, encompassing both paid and unpaid plans. The data is visualized using a trend line to depict changes over time. A point-in-time KPI is available to indicate the total number of active subscriptions for the current period, along with the variance from the previous period and the percentage change between the two periods.

How it's measured

Total Active Subscriptions = Total number of ACTIVE Subscriptions during the period.
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Reading

An upward trend in Total Active Subscriptions is a positive sign, indicating growth in your customer base.

Interpretation

  • Growth Indicator: For an early-stage business, increasing the number of active subscriptions is a positive indicator of growth and market penetration. It reflects the effectiveness of outreach and retention strategies.

  • Retention Strategy: Monitoring this metric helps in assessing whether your retention strategies are successful. If the number of active subscriptions is not growing as expected, it may be necessary to implement targeted outreach programs or refine retention efforts.

Example

In a given period:

Number of Paid Subscriptions (New & Recurring): 3,500

Number of Unpaid Subscriptions (ACTIVE status only): 500

Total ACTIVE Subscriptions = (3,500 + 500) = 4,000
This metric provides a comprehensive view of your subscription base, highlighting the effectiveness of your acquisition and retention strategies.


Total Active Subscriptions by Plan 

Total number of active subscriptions, including unpaid subscriptions, segmented by plan.

Explanation of metric

This metric provides a bar chart representation of the total active subscriptions, segmented by different plans. Each vertical bar represents a plan and is further divided into segments showing subscriptions with an ACTIVE status. The bars are grouped and stacked to illustrate the number of active subscriptions for each plan during the specified period.

How it's measured

Total Active Subscriptions by Plan = [(Total Count of Subscriptions with status as ACTIVE per Plan during the period.)]

Reading

An upward trend in Total Active Subscriptions by Plan is a positive indicator, showing an increase in the number of customers on specific subscription plans.

Interpretation

  • Insight into Subscription Distribution: This metric helps identify which plans are most popular and which are less favored. It can highlight shifts in customer preference or the impact of pricing changes.
  • Churn and Growth Indicators: A decrease in active subscriptions for a particular plan could indicate higher cancellation rates or lower new customer additions for that plan. Conversely, an increase can signal successful customer acquisition or retention strategies for that plan.
  • Strategic Focus: Use this metric to make informed decisions about plan adjustments, pricing strategies, or marketing efforts. It's crucial to monitor this before diving into metrics related to revenue, paid plans, ARPU, or examining signups and activations.

Example

In a given period:
Active Subscriptions for Plan A: 250
Active Subscriptions for Plan B: 35


Total Active Subscriptions by Customer Type 

Total number of active subscriptions, including unpaid subscriptions, segmented by Customer Type.

Explanation of metric

This metric provides a stacked bar chart representing the total number of subscriptions in an ACTIVE state, categorized by different Customer Types. Each bar represents a Customer Type and is segmented to show both paid and unpaid subscriptions. This visualization helps in understanding how active subscriptions are distributed across various customer segments.

How it's measured

Total Active Subscriptions by Customer Type = Number of active subscriptions during the period per customer type.

Reading

An upward trend in Total Active Subscriptions by Customer Type is a positive sign, indicating growth among specific customer segments (e.g., SMB, Enterprise, or Mid-Market).

Interpretation

  • Customer Segmentation Insight: This metric helps identify which customer types are most engaged with your product or service. It can indicate which segments are thriving and which may require additional focus.

  • Churn and Acquisition Indicators: A decrease in active subscriptions by Customer Type might suggest higher churn rates or reduced new customer acquisition for that segment. Conversely, an increase could highlight successful engagement or growth strategies for specific customer types.

  • Strategic Focus: For early-stage businesses, optimizing this metric through targeted outreach programs or retention strategies is crucial. Understanding the distribution by Customer Type can guide decisions on resource allocation, marketing strategies, and product development.

Example

In a given period:
Active Subscriptions for Plan A: 250
Active Subscriptions for Plan B: 35


Total Active Paid Subscriptions 

Total number of subscriptions in ACTIVE status enrolled in a paid plan.

Explanation of metric

This metric provides a trend line showing the total number of subscriptions that are currently active and have a paid status. It includes new subscriptions that have transitioned from free to paid plans, those that have moved from trial to paid, and recurring active paid subscriptions from previous periods.

How it's measured

Total Active Paid Subscriptions = Total number of active paid subscriptions.

Reading

An upward trend in total active paid subscriptions is a positive indicator, showing growth in the number of paying customers.

Interpretation

  • Business Health Indicator: An increase in the total number of active paid subscriptions indicates a healthy growth in revenue and customer base. Conversely, a decrease might suggest higher cancellations or lower acquisition of new customers.
  • Focus Areas: Monitoring this metric helps identify trends in customer retention and acquisition. A drop in active paid subscriptions could signal issues in customer satisfaction or effectiveness in onboarding and retention strategies.
  • Growth Measurement: Use this metric in conjunction with other key indicators like total revenue, customer acquisition cost, and churn rate to get a comprehensive view of business performance.

Example

In a given period:
Free to Paid Subscriptions: 200
IN TRIAL to Paid Subscriptions: 200
Recurring Active Paid Subscriptions (from previous periods): 3,000
Total active paid subscriptions = (200 + 200 + 3,000) = 3,400


Total Active Paid Subscriptions by Plan 

Total number of paid active subscriptions segmented by Plan.

Explanation of metric

This metric shows the total number of customers with an ACTIVE paid subscription, broken down by the specific plan they are subscribed to. It is visualized using a stacked bar chart and excludes customers in trial periods.

How it's measured

Total Active Paid Subscriptions by Plan = Count of active paid subscriptions per plan.

Reading

An upward trend in Total Active Paid Subscriptions by Plan is a positive indicator, reflecting growth in the number of paying customers subscribed to specific plans.

Interpretation

  • Plan Popularity: This metric indicates which plans are most popular among paying customers. Plans with higher numbers of active paid subscriptions are performing well in terms of customer preference.
  • Business Insight: Analyzing this metric helps understand which plans are generating the most revenue and which plans may need adjustments to attract more subscribers. It also aids in resource allocation and pricing strategy.
  • Growth Measurement: Track changes over time to see if shifts in plan popularity are due to pricing changes, new features, or other factors.

Example

In a given period:
New Paid Subscriptions (Plan A): 170
Free to Paid Subscriptions (Plan A): 300
Paid Active Subscriptions by Plan (Plan A) = (300 + 170) = 470


Total Active Paid Subscriptions by Plan Group 

Total number of paid active subscriptions segmented by Plan Group.

Explanation of metric

This metric displays the total number of customers who have subscribed to a paid plan, segmented by Plan Group (e.g., Freemium, Launch, Enterprise). It is represented using a stacked bar chart and excludes customers in trial periods.

Note

This metric is available with RS Premium only. To use this metric effectively, configure a custom field at the Customer resource level in Chargebee and map it to the Plan Group field in RevenueStory. For configuration, contact your Customer Success Manager or contact support .

How it's measured

Total Active Paid Subscriptions by Plan Group = Total Number of ACTIVE paid subscriptions per Plan group

Reading

An upward trend in Total Active Paid Subscriptions by Plan Group is a positive indicator, showing that more customers are subscribing to specific groups of plans.

Interpretation

  • Plan Group Performance: This metric indicates which Plan Groups are attracting the most paying customers.
  • Strategic Insight: Analyze this metric alongside Total MRR and New MRR by Plan Group to understand not only which groups have the most subscriptions but also which contribute the most revenue. For example, a Plan Group with a high number of subscriptions may not necessarily have the highest MRR if it includes lower-priced plans.
  • Business Strategy: Use this data to evaluate the effectiveness of different Plan Groups and make informed decisions about pricing, plan features, or marketing strategies.

Example

In a given period:
New Subscriptions Upgraded from Freemium to Enterprise Plan: 10
Enterprise Plan Monthly Rate: $99
Paid Active Subscriptions (Enterprise) = 10


Total Subscriptions 

Total number of subscriptions, including unpaid subscriptions.

Explanation of metric

This metric provides a comprehensive view of all subscriptions, represented by a stacked bar chart. It includes subscriptions in various states such as Trial, Active, Canceled, Non-renewing, and Future, as of the end of a specific period.

How it's measured

Total Subscriptions = Number of Subscriptions during the period

Reading

An upward trend in Total Subscriptions is a positive indicator, showing overall growth in your customer base. This increase reflects successful customer acquisition efforts and suggests that your offerings are resonating with the market.

Interpretation

  • Trend Analysis: An increase in total subscriptions generally indicates growth in the customer base, while a decrease could suggest higher cancellations or lower new customer acquisition.
  • Strategic Focus: Monitor this metric closely as it provides insights into overall subscription health. Changes in this metric should prompt a deeper analysis into related areas such as revenue, paid plans, ARPU (Average Revenue Per Unit), or upstream metrics like Signups and Activations.
  • Business Health: Use this metric to assess the effectiveness of customer acquisition and retention strategies. It helps in identifying areas needing improvement.

Example

In a given period:
Total Subscriptions (Trial): 13,000
Total Subscriptions (Active): 8,000


Total Subscriptions by Plan 

Total number of subscriptions, including unpaid subscriptions, segmented by plan.

Explanation of metric

This metric provides a detailed view of the number of subscriptions associated with each plan, represented by a stacked bar chart. It includes subscriptions in various states such as Trial, Active, Canceled, Non-renewing, and Future, as of the end of a specific period.

How it's measured

Total Subscriptions by Plan = Number of subscriptions during the period per plan.

Reading

An upward trend in Total Subscriptions by Plan is a positive sign, indicating that more customers are opting for specific subscription plans.

Interpretation

  • Trend Analysis: A decrease in this metric for a specific plan indicates potential issues such as higher cancellations or fewer new customer additions for that plan.
  • Strategic Focus: This metric helps identify which plans are performing well and which are underperforming. It's important for understanding shifts in customer preferences and the impact of plan-specific strategies.
  • Business Health: Use this metric to monitor the health of each plan and adjust strategies accordingly. If a particular plan shows a significant decrease in subscriptions, it may signal the need for a review of its value proposition or pricing.

Example

In a given period:
Total Subscriptions (Scale Plan): 13,000
Total Subscriptions (Start-up Plan): 8,000


Average Lifetime of a Paid Subscription 

Total lifetime of paid subscriptions calculated in months.

Explanation of metric

This metric represents the average duration that a paid subscription remains active. It is displayed as a trend line showing the average subscription lifetime over a period. Additionally, a point-in-time KPI is available to compare the current period's average lifetime with previous periods and assess percentage changes.

How it's measured

Average Lifetime of a Paid Subscription = [1/Average(Paid Subscription Churn Rate)] x 100

Note

Paid Subscription Churn Rate = [(No of Paid Subscriptions CANCELLED) / (Total No of paid Subscriptions at the beginning of period)] x 100

Reading

An upward trend in the Average Lifetime of a Paid Subscription is a positive indicator, reflecting longer retention of paying customers.

Interpretation

  • Customer Retention: A higher average lifetime indicates that customers remain subscribed for a longer period, which contributes to increased revenue.
  • Revenue Impact: The longer customers stay, the more revenue is generated over their lifetime. Controlling churn can help extend this lifetime and maximize revenue.
  • Strategic Focus: Monitoring this metric helps in understanding customer retention trends and the effectiveness of retention strategies. A decrease in lifetime may signal rising churn rates and the need for intervention.

Example

If Average Paid Subscription Churn rate = 12
Paid Subscription Lifetime = (1/12) x 100 = 8.33


Average Lifetime of a Paid Subscription by Business Type 

Total lifetime of paid subscriptions calculated in months, segmented by Business Type.

Explanation of metric

This metric shows the average duration that paid subscriptions remain active, broken down by different Business Types (e.g., E-Commerce, SaaS, Ed Tech). The data is represented as a stacked bar chart for each Business Type during a specific period.

Note

This metric is available with RS premium only. To use it efficiently, configure a custom field at the Customer resource level in Chargebee and map it to the Business Type field in RevenueStory. Contact your Customer Success Manager or contact support .

How it's measured

Average Lifetime of a Paid Subscription by Business Type = [1/(Average Paid Subscription Churn Rate per business Type) x 100]

Note

Paid Subscription Churn Rate = [(Number of Paid Subscriptions CANCELLED) / (Total Number of paid Subscriptions at the beginning of period)] x 100

Reading

An upward trend in the Average Lifetime of a Paid Subscription by Business Type is a positive indicator, showing that specific types of businesses are retaining paid subscriptions for longer periods.

Interpretation

  • Customer Retention by Business Type: This metric provides insights into the average length of time customers from each Business Type stay subscribed. It helps in understanding how well each business type retains customers.
  • Revenue Impact: Longer subscription lifetimes contribute to greater revenue. By controlling churn, you can extend the average lifetime and maximize revenue from each Business Type.
  • Strategic Focus: Analyze the metric to identify which Business Types have longer average lifetimes and focus on strategies to improve retention in those areas. This helps in tailoring marketing and customer success efforts to extend subscription duration.

Example

In a given period, for an E-Commerce business:
Average Paid Subscription Churn Rate: 12% per year
Paid Subscription Lifetime by Business Type = [(1/12) x 100 ] = 8.33 years


Average Revenue per Subscription 

Average recurring revenue earned from a subscription, including both unpaid and paid subscriptions.

Explanation of metric

This metric provides a point-in-time indicator of the average monthly revenue generated from all subscriptions, regardless of their status (free or paid). It helps in understanding how much revenue, on average, is generated from each subscription.

Note

Average Revenue Per Subscription (ARPS) is often used interchangeably with Average Revenue Per Account (ARPA) and Average Revenue Per Unit (ARPU).

How it's measured

Average Revenue Per Subscription= [(Total MRR)/ (Total ACTIVE Subscriptions)]

Note

This metric includes only active subscriptions

Reading

An upward trend in Average Revenue per Subscription is a positive indicator, signifying that each subscription is generating more revenue.

Interpretation

  • Revenue Optimization: ARPS is a crucial indicator for revenue optimization. To improve ARPS, focus on encouraging customers to move to higher-priced plans and consider annual pricing increases.
  • Revenue Impact: Increasing ARPS directly enhances Total MRR without the need for acquiring additional customers. It's a key metric for assessing the effectiveness of pricing strategies and customer upgrade programs.
  • Strategic Actions: Regularly analyze ARPS to identify opportunities for revenue growth through pricing adjustments and upselling strategies.

Example

In a given period:
Total MRR (Free & Paid): $50,000
Number of Active Subscriptions: 1200
Average Revenue Per Subscription = (50,000/1200) = $41.66


Average Revenue per New Paid Subscription 

Average recurring revenue earned from a new paid subscription.

Explanation of metric

This metric provides a point-in-time indicator of the average revenue generated per new paid subscription activated during a specific period. It focuses on the revenue contribution of newly acquired subscriptions, excluding reactivations.

How it's measured

Average Revenue per New Paid Subscription = [(MRR of Newly Activated Subscriptions)/ (Number of Activations during the period)]

Reading

An upward trend in Average Revenue per New Paid Subscription is a positive indicator, suggesting that new customers are generating more revenue on average.

Interpretation

  • Customer Value Insight: This metric helps determine the value of new customers being acquired. A higher ARPS suggests that new subscriptions are generally of higher value.
  • Optimization: Optimize this metric by encouraging new customers to opt for higher-value plans or by periodically increasing plan prices.
  • Strategic Decisions: Use this metric to assess the effectiveness of acquisition strategies and pricing adjustments. It can also help in forecasting revenue from new customer acquisitions.

Example

In a given period:
New Subscriptions for Plan A ($10/month): 15
New Subscriptions for Plan B ($20/month): 25
MRR of Newly activated subscriptions = (15X10)+(25X20) = $650
Number of Activations during the period = (15+25) = 40
Average Revenue per New Subscription = (650/40) = $16.25


Average Revenue Lost per Churned Subscription 

Average recurring revenue lost from a canceled paid subscription.

Explanation of metric

This metric provides a point-in-time indicator of the average revenue lost per churned (i.e., canceled) subscription during a specific period. It focuses on the revenue impact of canceled subscriptions.

How it's measured

Average Revenue Lost per Churned Subscription = [(Cancellation MRR)/(Number of Churned Subscriptions)]

Reading

A downward trend in Average Revenue Lost per Churned Subscription is a positive indicator, suggesting that the revenue impact of churned customers is decreasing.

Interpretation

  • Impact Assessment: This metric helps assess the financial impact of churn on MRR and ARPU. A higher average revenue lost per churned subscription indicates that losing customers has a significant revenue impact.
  • Strategy Focus: Aim to reduce churn and its impact on revenue. Understanding this metric helps in identifying the importance of retaining high-value customers.
  • Optimization: Strategies to reduce churn should focus on improving customer satisfaction and value to minimize the revenue lost per churned subscription.

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
Number of Churned Subscriptions = (15+25) = 40
Average Revenue per Churned Subscription = 650/40 = $16.25


Total Subscription Quantity 

Total quantity associated with subscriptions, including unpaid subscriptions.

Explanation of metric

This metric shows the aggregated quantity of each plan or add-on for each subscription, particularly in cases where a quantity-based pricing model is used. It provides insight into the total volume of products or services that subscribers are utilizing during a specific period.

How it's measured

Total Subscription Quantity = Total number of subscriptions ACTIVE during the period.

Reading

An upward trend in Total Subscription Quantity is a positive indicator, reflecting an increase in the overall number of subscriptions.

Interpretation

  • Volume Insight: Tracking the total subscription quantity helps understand the overall usage of your products or services. This is especially relevant for quantity-based pricing models, where the number of units subscribed to can be crucial.
  • Flexibility and Billing: If you are considering transitioning from fixed plan pricing to quantity-based plans, monitoring this metric provides a more comprehensive view of your subscriber base and helps you understand how flexible billing models might impact your business.
  • Strategic Decisions: A higher quantity might indicate a greater customer engagement level or the need to adjust pricing strategies. Conversely, a decline might suggest a need for marketing or product enhancements.

Example

In a given period:

  • Plan A has 500 units.
  • Plan B has 300 units.
  • Plan C has 200 units.
    Total Subscription Quantity: 500+300+200 = 1,000
    Thus, the Total Subscription Quantity for the period is 1,000 units.

Total Subscription Quantity by Plan 

The total quantity of plans associated with active subscriptions during the period, segmented by plan.
Explanation of metric
This metric provides a detailed breakdown of the total quantity of each plan that is actively subscribed to by users. It uses a stacked bar chart to illustrate the quantity associated with each plan, offering insight into the distribution and volume of subscriptions across different plans.
How it's measured

Total Subscription Quantity by Plan = The total quantity of plans associated with active subscriptions segmented by the plan.

Reading
An upward trend in Total Subscription Quantity by Plan is a positive indicator, showing an increase in the number of subscriptions for specific plans.
Interpretation

  • Revenue Expansion: For businesses that sell physical goods or services through subscriptions, increasing the quantity of subscriptions can directly contribute to higher Monthly Recurring Revenue (MRR). This metric helps identify which plans are driving the most volume.
  • Inventory Planning: In physical goods businesses, tracking this metric by plan allows for better inventory management and forecasting. Understanding which plans or products are most popular helps in planning inventory levels and reducing stockouts or overstock situations.
  • Strategic Insights: By analyzing the total subscription quantity by plan, businesses can make informed decisions about pricing, promotions, and product offerings to maximize revenue and customer satisfaction.

Example

In a given period:

  • Plan A: 800 units
  • Plan B: 500 units
  • Plan C: 300 units
    Total Subscription Quantity by Plan:
  • Plan A: 800 units
  • Plan B: 500 units
  • Plan C: 300 units
    This breakdown shows how many units of each plan are actively subscribed to, providing insights into customer preferences and helping with strategic planning.

Total Subscription Quantity by Product 

The total quantity associated with subscriptions, including unpaid subscriptions, segmented by Product.
Explanation of metric
This metric tracks the total number of subscriptions in the ACTIVE state, segmented by product or addon. It provides insights into the distribution of quantities across different products or addons, using a chart for visualization.
How it's measured

Total Subscription Quantity by Product = Total number of Subscriptions per plan/addon

Reading
An upward trend in Total Subscription Quantity by Product is a positive indicator, reflecting an increase in the number of subscriptions for specific products.
Interpretation

  • Revenue Expansion: For subscription-based businesses, tracking the quantity of each product or addon can help identify which items are driving revenue and how they contribute to Monthly Recurring Revenue (MRR).
  • Inventory and Resource Planning: In businesses dealing with physical goods, understanding the subscription quantities by product helps with inventory management and forecasting. It allows for better planning and adjustment of stock levels to meet demand.
  • Customer Insights: By analyzing this metric, businesses can gain insights into customer preferences and trends, which can inform product development, marketing strategies, and promotional efforts.

Example

In a given period:

  • Plan 1: 400 subscriptions
  • Plan 2: 700 subscriptions
    This breakdown shows the total number of active subscriptions for each product or addon, helping to gauge product popularity and inform strategic decisions.

Total New Paid Subscriptions 

The total number of new paid subscriptions acquired during a specific period.

Explanation of metric

This metric tracks the number of new paying subscriptions added during the period. It includes conversions from free subscriptions to paid plans as well as brand-new subscriptions that are activated in paid plans. A trend line visualizes this data, and a point in time KPI shows the New Paid Subscriptions for the current period, along with the variance and percentage change compared to previous periods.

How it's measured

Total New Paid Subscriptions = Count of Paid Subscriptions created during the period

Note

Includes conversions from IN TRIAL to Paid and future scheduled activations.

Reading

An upward trend in Total New Paid Subscriptions is a positive indicator, reflecting the successful acquisition of new paying customers.
Interpretation

  • Business Growth Indicator: An increase in new paid subscriptions suggests positive business growth and customer acquisition. It is a sign that the business is attracting new customers and converting free users to paying customers.
  • Trend Analysis: Tracking this metric helps in understanding trends over time, which can indicate the effectiveness of marketing strategies, sales efforts, and product appeal.
  • Strategic Planning: Regular monitoring allows businesses to adjust strategies to sustain or accelerate growth. A consistent rise in new paid subscriptions generally means that the business is on the right track.

Example

In a given period, 10 new subscriptions were created. This figure indicates the number of new paying customers acquired during that period.


Total New Paid Subscriptions by Customer Type 

The total number of newly activated paid subscriptions segmented by Customer Type.

Explanation of metric

This metric tracks the number of new paying subscriptions acquired during the period, segmented by Customer Type. It includes conversions from free to paid subscriptions and new subscriptions activated in paid plans. A stacked bar chart visualizes this data, showing the distribution across different customer types.

How it's measured

Total New Paid Subscriptions by Customer Type = Total number of New paid subscriptions created during the period per Customer Type.

Note

Includes conversions from IN TRIAL to Paid and future scheduled activations.

Reading

An upward trend in Total New Paid Subscriptions by Customer Type is a positive indicator, showing an increase in the number of new paying customers across specific customer segments (e.g., SMB, Enterprise, or Mid-Market).

Interpretation

  • Growth Indicator by Customer Type: This metric helps in understanding which customer types are contributing most to new paid subscriptions. Tracking this can reveal which segments are most engaged and responsive to your offerings.
  • Strategic Insights: Focus on customer types with high new subscription numbers and tailor marketing and messaging strategies to these segments. Adjust approaches for customer types with lower subscription rates to improve engagement and conversion.
  • Business Strategy: Consistent growth in new paid subscriptions across various customer types indicates successful customer acquisition strategies and market fit. It allows for more targeted decision-making and resource allocation.

Example

In a given period:
Total Signups: 700
New Paid Subscriptions by Customer Type: 500
This example shows that 500 new paid subscriptions were segmented by various customer types out of the total signups, indicating the effectiveness of customer targeting strategies.


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