What is the Churned Subscriber Lifetime Metric?
The Churned Subscriber Lifetime metric represents the average duration a subscriber is active before churning. This metric provides insight into the average length of time during for which customers are typically retained as subscribers before they leave your platform.
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 finding the average duration:
Churned Subscriber Lifetime = (Sum of lifecycle lengths of churned subscribers) / (Total number of churned subscribers)
- Lifecycle lengths of churned subscribers: The duration between each churned subscriber's activation date and their churn date.
- Total number of churned subscribers: The total count of subscribers who churned within the specified month.
How to Use the Churned Subscriber Lifetime Metric in a Subscription Business
The Churned Subscriber Lifetime metric is valuable for understanding the average customer relationship length and identifying opportunities to improve retention. You can use it to:
- Assess Customer Loyalty: Monitor the average lifetime to understand the duration of customer relationships and identify trends in customer loyalty.
- Evaluate Retention Efforts: Analyze the impact of retention strategies on the average lifetime of churned subscribers.
- Identify High-Churn Segments: Compare the average lifetime across different subscriber segments to identify high-churn customer groups.
- Forecast Customer Lifetime Value (CLTV): Use the average lifetime to estimate the potential CLTV of subscribers and inform long-term revenue planning.
FAQs about Churned Subscriber Lifetime
How does Churned Subscriber Lifetime differ from Churn Rate?
Churned Subscriber Lifetime measures the average duration of customer relationships, while Churn Rate measures the percentage of subscribers who churned. They provide different perspectives on customer attrition.