A successful subscription business model depends not only on new customer acquisition but also on net retention and customer lifetime value growth. Research shows that 70% of subscription revenue on average comes from existing customers. Because of the criticality of retention, customer churn rate is a key metric.
Zuora’s Subscribed Institute analyzed Subscription Economy Benchmark data to develop guidance on how auto-renewing, evergreen, and standard termed subscriptions affect churn.
Report highlights include:
- Explanation of the 2 dominant types of subscriptions: Termed and Evergreen
- Churn rate analysis for evergreen and auto-renewing subscriptions compared to standard termed subscriptions
- The impact of auto-renewing termed subscriptions on LTV