Must-Know Subscription Kpis [Latest Report]

Highlights: Subscription Kpis

  • 1. Monthly Recurring Revenue (MRR)
  • 2. Annual Recurring Revenue (ARR)
  • 3. Churn Rate
  • 4. Customer Lifetime Value (CLV)
  • 5. Customer Acquisition Cost (CAC)
  • 6. Average Revenue per User (ARPU)
  • 7. Subscriber Growth Rate
  • 8. Conversion Rate
  • 9. Retention Rate
  • 10. Net Promoter Score (NPS)
  • 11. Renewal Rate
  • 12. Revenue Churn
  • 13. Active User Rate

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In the highly competitive world of digital content and online services, subscription-based business models have become the cornerstone of generating consistent revenue and ensuring long-term growth. By closely monitoring and optimizing Subscription Key Performance Indicators (KPIs), organizations can gain invaluable insights into their customer base, propel user engagement, and enhance overall profitability.

In this comprehensive blog post, we delve into the crucial metrics that can make or break your subscription-based business, discuss the significance of each KPI, and provide practical tips on how to improve your performance for sustainable success.

Subscription KPIs You Should Know

1. Monthly Recurring Revenue (MRR)

This KPI measures the total recurring revenue generated by subscribers in a month. It shows the company’s stability and growth potential through recurring income.

2. Annual Recurring Revenue (ARR)

Similar to MRR, ARR calculates the total recurring revenue generated by subscribers in a year, offering a longer-term perspective on the business’s recurring income.

3. Churn Rate

Measures the rate at which subscribers cancel their subscriptions within a given period. A high churn rate indicates potential dissatisfaction among customers or ineffective customer retention strategies.

In the highly competitive world of digital content and online services, subscription-based business models have become the cornerstone of generating consistent revenue and ensuring long-term growth.

4. Customer Lifetime Value (CLV)

This KPI estimates the total revenue a business can expect to receive from a customer throughout their entire relationship. Higher CLV means better long-term profitability for the company.

5. Customer Acquisition Cost (CAC)

Calculates the average cost involved in acquiring a new subscriber, including marketing and sales expenses. Lower CAC indicates a more efficient customer acquisition process.

6. Average Revenue per User (ARPU)

Measures the average revenue generated per subscriber within a given period. Increased ARPU can signify better monetization strategies and higher perceived value from customers.

Subscription KPIs play a critical role in assessing the performance and growth of a business.

7. Subscriber Growth Rate

The rate at which the total number of subscribers grows within a specific period. A higher growth rate reflects a successful marketing and acquisition strategy.

8. Conversion Rate

The percentage of users who convert from free trials, freemium plans, or website visitors into paying subscribers. Higher conversion rates demonstrate more effective marketing and sales efforts.

9. Retention Rate

This KPI measures the percentage of subscribers retained over a specific period by calculating the ratio of existing customers to total customers. A high retention rate indicates successful customer engagement and satisfaction.

10. Net Promoter Score (NPS)

A KPI that measures customer loyalty by asking customers how likely they are to recommend the subscription service to others. Higher NPS scores signify more satisfied and loyal customers.

11. Renewal Rate

The percentage of customers who renew their subscription at the end of their current billing cycle. A higher renewal rate demonstrates better customer satisfaction and commitment to the service.

12. Revenue Churn

Measures the lost revenue due to subscriber cancellations within a specific period. Lower revenue churn indicates better customer retention and overall business performance.

13. Active User Rate

The ratio of active subscribers who regularly engage with the service to the total number of subscribers. A higher active user rate signifies better customer engagement and potentially higher customer satisfaction.

Subscription KPIs Explained

Subscription KPIs play a critical role in assessing the performance and growth of a business. Key metrics such as Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) provide insights into the company’s stability and potential for growth through recurring income. Churn Rate, Customer Lifetime Value (CLV), and Customer Acquisition Cost (CAC) help evaluate customer satisfaction, long-term profitability, and the efficiency of customer acquisition strategies.

Metrics like Average Revenue per User (ARPU), Subscriber Growth Rate, Conversion Rate, Retention Rate, Net Promoter Score (NPS), and Renewal Rate help determine the effectiveness of marketing and monetization efforts while highlighting customer loyalty and satisfaction. Lastly, Revenue Churn and Active User Rate illustrate the overall business performance and customer engagement, shaping the company’s course for future development and success.


In summary, monitoring and optimizing Subscription KPIs is vital for any business looking to capitalize on the benefits offered by a recurring revenue model. A thorough understanding of key performance indicators such as MRR, Churn Rate, LTV, and CAC is crucial in ensuring the long-term success and growth of a subscription-based business.

By regularly tracking these metrics and leveraging the data to refine marketing strategies, enhance customer experience, and minimize attrition, businesses can unlock the full potential of the subscription economy and sustain a competitive edge in their respective industries. Staying attuned to the evolving trends and improving the subscription KPIs will be an ongoing endeavor for businesses striving to thrive and maintain a loyal customer base.


What are the key subscription KPIs that businesses should focus on for measuring the success of their subscription-based service?

The key subscription KPIs businesses should track include Monthly Recurring Revenue (MRR), Customer Retention Rate, Churn Rate, Customer Lifetime Value (CLV), and Average Revenue per User (ARPU).

How is Monthly Recurring Revenue (MRR) calculated for a subscription-based business?

MRR is calculated by summing up the monthly revenue generated by each active subscriber over a given period. This metric helps businesses understand their revenue stability and predict future revenue streams.

Why is Customer Retention Rate important for subscription businesses, and how can it be improved?

Customer Retention Rate reflects the percentage of customers who continue using a subscription service over a specific period. It is vital for maintaining strong revenue growth and understanding customer satisfaction. This rate can be improved through exceptional customer service, engaging content, personalized offers, and continuous product enhancements.

What is Churn Rate, and how does it impact a subscription-based business?

Churn Rate measures the percentage of customers who discontinue their subscription within a given time frame. A high churn rate may signify customer dissatisfaction, weak value proposition, or other barriers to long-term loyalty. A lower churn rate indicates better customer retention and a healthier subscription business.

How can businesses increase their Customer Lifetime Value (CLV) in a subscription-based model?

Businesses can increase their CLV by focusing on strategies to enhance customer satisfaction, engage users, and reduce churn rates. Tactics can include improving product quality, offering personalized promotions, introducing referral programs, delivering exceptional customer support, and continuously seeking customer feedback to understand and address user needs.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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