What is the New User Conversion Rate Metric?
The New User Conversion Rate metric represents the percentage of newly activated accounts that converted to an offer, including both free and paid offers. It measures the effectiveness of your initial conversion funnel, showing how well you convert new users into paying customers.
This metric is available for the clients who have access to ChurnIQ. You can find it in the Cleeng Dashboard under ChurnIQ.
How is it Calculated?
The formula for calculating New User Conversion Rate is:
New User Conversion Rate = (Converted New Users / Total New Users Activated)
- Converted New Users: The number of newly activated accounts that purchased an offer.
- Total New Users Activated: The total number of new user accounts activated within the specified period.
How to Use the New User Conversion Rate Metric in a Subscription Business
The New User Conversion Rate metric is crucial for evaluating the performance of your initial conversion efforts. You can use it to:
- Measure Onboarding Effectiveness: Track the conversion rate to assess the effectiveness of your onboarding process and identify potential bottlenecks.
- Evaluate Initial Offer Appeal: Analyze the conversion rate to determine the attractiveness of your initial offers to new users.
- Assess Acquisition Channel Performance: Measure the conversion rate of new users from different acquisition channels to identify the most effective channels.
FAQs
How does New User Conversion Rate differ from Trial Conversion Rate?
New User Conversion Rate measures the conversion of newly activated accounts to paying customers, while Trial Conversion Rate measures the conversion of free trials to paid subscriptions. They measure different stages of the customer journey.