What is Average Revenue per Paid Subscription by Acquisition Channel metric in RS?

Modified on: Mon, 30 Aug, 2021 at 10:23 AM

Average Revenue earned per paid Subscription per month segmented by the Acquisition Channel.
Explanation of metric
  • A table breaking down the Revenue earned per paid Subscription during the period segmented by the Acquisition Channel.
  • This is available with RS premium only and to use this metric more efficiently, you have to configure a custom field at the Customer resource level in Chargebee and map it to the Sales Agent field to a Customer resource in RevenueStory. However, you can configure and select your own values in this custom field, it is recommended to configure meaningful values that is relevant for your business. Please connect with your Customer Success Manager or contact support

How it's measured

Average Revenue per Paid Subscription by Acquisition Channel = [(Total MRR)/ (No of Paid Subscriptions per Customer Acquisition Channel)]
Reading

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Interpretation
  • It is used to assess the Average Revenue generated from a paying Customer per Acquisition Channel. It is a good indicator of the financial health of the company, providing you with an excellent analytical framework to understand the effectiveness of your business’s Revenue generation function through each acquisition channel.
  • Example:
    In a given period, 200 Customers are on Plan A ($10/month) and 300 Customers on Plan B ($20/month) acquired through Channel 1.
    Total MRR = (200X10)+(300X20) = $8,000
    No. of Active Paid Subscribers = (200+300) = 500
    Average Revenue per Paid Subscription by Acquisition Channel (Channel) = (8000/500) =$16.00

Click here to know about other metrics.

M
Monica is the author of this solution article.

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