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Hidden Moats in Consumer Subscription
Consumers will always churn at higher rates vs. enterprise services and even the best consumer apps can expect first year churn to be 30–50%.
Eric Crowley • Is Consumer Subscription the Next Software Boom market?
Your product isn’t for everyone, and that’s OK. More importantly, low churn for the sake of low churn is counterproductive - in reality, there’s a sweet spot of acceptable turnover to aim for. Extremely low churn can indicate you’re not stopping enough of your audience, failing to convert them at an optimal rate, or that it’s time to raise pricing,... See more
Brian Morrissey • Churn wars
The churn rate for companies employing usage-based billing is about 10 percent less on an annual basis: 26 percent for usage-based billers in comparison with 37 percent for non-usage-based billing companies. These lower churn rates reflect higher customer satisfaction and engagement with companies that fulfill the central tenet of the Subscription
... See moreTien Tzuo • Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It
...consumers are less likely to churn when they subscribe for a product or service they need. Aspirational services (e.g., gym/fitness memberships, audiobooks, meal kits) are usually the first subscriptions to go when consumers find that they can’t live up to their aspirations for being healthier or reading more.
Angela Tran Kingyens • The continuous rise of SaaS in the consumer space - Version One
The Pitfalls of Churn Rate
medium.comA study by Bessemer Venture Partners notes that an acceptable annual customer churn rate is anything below 7 percent, which comes out to about a .58 percent monthly churn.15
Bradley Miles • #BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)
over time, conversion rates typically dip as the user base expands to include people who are more price-sensitive or who see less value in the service.