Average Revenue earned from new Subscriptions during a specific period.
Explanation of metric
Point in time indicator of the revenue earned per New paid Subscription during the period.
How it's measured
Average Revenue per New Subscription = [(MRR of Newly Activated Subscriptions)/ (No. of Activations during the period)]
Note: Only the first Activation date is considered. Subsequent reactivations are not considered
It indicates if the New Subscriptions are high-value Customers. This metric can be optimized by adding New Customers in a high-value Plan or by periodically increasing Plan pricing.
In a given period, 15 new Subscriptions are created for Plan A ($10/month) and 25 new Subscriptions are created for Plan B ($20/month)
MRR of Newly activated Subscriptions = (15X10)+(25X20) = $650
No. of Activations during the period = (15+25) = 40
Average Revenue per New Subscription = (650/40) = $16.25
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