Understanding customer retention and churn is critical for subscription-based businesses. Below is a detailed description of each KPI to help you monitor and Billing these vital metrics.
1. Customer Retention Rate (CRR)
Definition:
CRR measures the percentage of customers retained over a specific period, reflecting your ability to keep customers engaged and loyal.
Formula:
2. Net Revenue Retention (NRR)
Definition:
NRR measures the percentage of recurring revenue retained from existing customers, factoring in upgrades, downgrades, and churn.
Formula:
3. Subscriptions Churn Rate
Definition:
Churn Rate is the percentage of customers or subscriptions lost during a specific period.
Formula:
5. Chargeable Subscription Churn
Definition:
This metric tracks the total number of chargeable subscriptions that were canceled or lost during a specific period.
6. Chargeable Subscription Churn Rate
Definition:
This is the percentage of chargeable subscriptions canceled or lost during a specific period.
Formula:
7. Total Scheduled Cancellations
Definition:
This metric counts the number of chargeable subscriptions scheduled for cancellation in the future.
Formula: Total Scheduled Cancellations = Number of Chargeable Subscriptions Scheduled for cancellation
8. Churned Subscribers
Definition:
Churned Subscribers represent the total number of customers who have canceled their subscriptions within a specific period.
Formula: Churned Subscribers = Total number of Customers who have cancelled their Subscriptions within a specific period