Measuring and Assessing Subscriber Churn

Written by Kevin Suer, Senior Product Manager at Zuora

In their most recent quarterly earnings statements, The New York Times reported adding more subscribers than it had in any quarter before -- across its entire history, and Netflix reported adding 5M new members, passing $2.5B in quarterly streaming revenue, and boasting that the growth opportunity they face is “gigantic”.

And they are not alone. According to recent Zuora research, subscription business sales have grown nine times faster than S&P 500 sales over the past five years (15.1% versus 1.7%) and four times faster than US retail sales (15.1% versus 3.6%). Let those numbers sink in for a moment.

So what’s behind their impressive growth? These businesses think differently about one critical, often ignored metric: Churn Rate.

Top subscription businesses know how to calculate churn, know what it indicates about their business, and know how to use it as a tool to focus the entire business to drive top-line growth.

Download this eBook to learn about:

  • Measuring Churn – How to calculate churn for your subscription business, including a discussion of the alternate formulas for calculating it.
  • Assessing Churn – A framework for interpreting what your churn rate means for your business, and how it can guide your growth strategy.
  • Resources to help you reduce your churn rate and grow your business.

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