What is Average Revenue per New Subscription metric in RevenueStory?

Modified on: Mon, 30 Aug, 2021 at 10:26 AM

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
Reading

Up: Good

Interpretation
  • 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.

  • Example:
    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

Click here to know about other metrics.


M
Monica is the author of this solution article.

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