Retention should come before acquisition because retention compounds and acquisition does not. Acquisition adds a fixed number of subscribers each month. Retention determines what fraction of every past month's acquisition is still there. That difference is multiplicative, which is why two percentage points of monthly churn separates two otherwise identical businesses by 67% at steady…
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Nine metrics run a subscription business: monthly recurring revenue, annual recurring revenue, average revenue per user, gross revenue retention, net revenue retention, subscriber retention rate, involuntary churn rate, customer acquisition cost, and customer lifetime value. Three of those tell you whether the business is healthy. The other six tell you why. Most subscription teams can…
Continue ReadingThere are six subscription pricing models in common use. Flat rate charges every customer the same price for the same product. Tiered charges different prices for different feature sets or volumes. Usage-based charges by measured consumption. Prepaid term charges for a longer commitment up front at a lower effective monthly rate. Freemium provides a permanently…
Continue ReadingWhat does "Level Up" mean to you? At SubSummit 2025, it's about unlocking new opportunities, making meaningful connections, and gaining insights you won't find anywhere else. Here's what's waiting for you in Dallas this May.
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