Subscription business model


Subscription business models are based on the idea of selling a product or service to receive monthly or yearly recurring subscription revenue. They focus on customer retention over customer acquisition.


  1. Monthly Recurring Revenue (MRR)
  2. Annual Recurring Revenue (ARR)
  3. Average Revenue Per Customer (ARPC)
  4. Churn Rate
  5. Retention RateRetention Rate
    Retention rate is the percentage of customers a business retains over a given period. This is a critical success metric for a subscription-based businesses model. Logically, a high retention rate w...
  6. Revenue churn
  7. Renewal Rate
  8. Customer Lifetime Value (CLV or LTV)