What is the Resubscription Rate Metric?
The Resubscription Rate metric measures the effectiveness of your efforts to re-engage churned subscribers and bring them back to your platform. It represents the proportion of new subscriptions started that are created by customers who had also subscribed in the past, before churning. It reflects both the success of your winback strategies, and the underlying loyalty of your former 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 Resubscription Rate is:
Resubscription Rate = (Winback Subscribers / (New Subscribers + Winback Subscribers)) * 100
- Winback Subscribers: The number of previously churned subscribers who started a new subscription.
- New Subscribers: The number of first-time subscribers who activated a subscription.
How to Use the Resubscription Rate Metric in a Subscription Business
The Resubscription Rate metric is a powerful indicator of customer loyalty and the effectiveness of your recovery strategies. You can use it to:
- Measure Customer Loyalty and Churn Impact: Analyze the resubscription rate alongside Churned Subscriber Lifetime and Churn Rate to understand the long-term impact of churn and the potential for recovery. A high resubscription rate coupled with a longer churned subscriber lifetime can suggest strong brand affinity.
- Evaluate Winback Campaign Effectiveness and ROI: Track the resubscription rate to assess the success of your winback campaigns and calculate the return on investment (ROI). Compare the Resubscription Rate with New User Conversion Rate to understand if your winback strategies are more or less efficient than your new user acquisition efforts.
- Analyze Cancellation Reasons and Recovery: Correlate the Resubscription Rate with data on cancellation reasons. This will provide insights into which cancellation reasons are more likely to result in successful winbacks, allowing you to prioritize recovery efforts.
- Compare Resubscription Rate and Coupon to Full-Price Conversions: If you use coupons to win back customers, compare the Resubscription Rate to the Coupon to Full-Price Conversions metric. This will help you understand the long-term value of your coupon winback strategies.
FAQs
How does Resubscription Rate differ from Winback Subscribers?
Winback Subscribers is the total count of subscribers returning to your platform and starting a new subscription, after churning in the past. Resubscription Rate is the proportion of winback subscribers relative to the total number of new and winback subscribers. They provide different perspectives on winback performance.
What does a high resubscription rate mean?
There are a number of possible explanations for a high resubscription rate. The first is seasonality. Highly seasonal products, like sports streaming for example, will usually see spikes in resubscription rates in the early stage of the season. This is similarly true of health & wellness platforms early in the calendar year. However, a high resubscription rate may also reflect high rates of 'churn and return' behaviour in your existing subscriber base, with multiple subscription cycles being the norm. It is important to always look at resubscription rates in the context of subscriber acquisition generally. As it is to balance a monthly view of resubscription with a longer term, multi-quarter view.