What is the Upgrades and Downgrades Metric?
The Upgrades and Downgrades metric represents the daily count of subscribers who changed their subscription to a higher-tier offer (Upgrade) or a lower-tier offer (Downgrade). This metric provides a granular view of subscriber movement between subscription tiers
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 calculation involves counting daily occurrences of upgrades and downgrades:
- Identify Changes: For each day, identify subscribers who changed their subscription tier.
- Categorize Changes: Categorize each change as either an Upgrade or a Downgrade. This categorization is directly tied to your offer switch settings (these settings allow you to define the relationships between their subscription offers, explicitly stating which offers are considered upgrades or downgrades relative to each other).
- Count Changes: Count the number of Upgrades and Downgrades for each day.
How to Use the Upgrades and Downgrades Metric in a Subscription Business
The Upgrades and Downgrades metric is crucial for understanding subscriber behavior and the effectiveness of your subscription tiers. You can use it to:
- Monitor Tier Performance: Track the daily count of upgrades and downgrades to assess the performance of different subscription tiers.
- Evaluate Pricing Strategies: Analyze the impact of pricing changes or promotional activities on upgrade and downgrade rates.
- Identify Customer Needs: Use the data to understand customer needs and preferences, and identify potential issues with specific subscription tiers.
- Forecast Revenue Changes: Use the metric to forecast potential revenue changes resulting from upgrades and downgrades.