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.
Metrics
- Monthly Recurring Revenue (MRR)
- Annual Recurring Revenue (ARR)
- Average Revenue Per Customer (ARPC)
- Churn Rate
- 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... - Revenue churn
- Renewal Rate
- Customer Lifetime Value (CLV or LTV)
Reference:
#business/business-model