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Hidden Moats in Consumer Subscription
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Retention is the opposite of churn. Some types of businesses focus more on one or the other. Retention often comes as renewals; churn is cancellation of services or lack of renewal. Both are usually presented as percentages and can be representing active users or MRR (monthly recurring revenues).
customers who subscribe tend to stick with the app longer (probably because they feel they have a long-term relationship with the app instead of a one-off interaction), meaning they’ll pay the company more money throughout their lives. In business terms, customers will have a higher “lifetime value” (LTV), and maximizing LTV is widely seen as the h
... See moreThe first is to measure churn by cohort, so you’re comparing new to churned users based on when they first became users. The second way is really, really simple, which is why we like it: measure churn each day. The shorter the time period you measure, the less that changes during that specific period will distort things.