What is the Net Subscriber Movement Metric?
The Net Subscriber Movement metric represents the net difference between gained subscribers (new subscribers and winbacks) and churned subscribers within a given period. It provides a clear indication of your subscriber base's growth or decline, focusing on the overall change in subscriber numbers.
You can find it in the Cleeng Dashboard under Analytics.
How is it Calculated?
The formula for calculating Net Subscriber Movement is:
Net Subscriber Movement = (New Subscribers + Subscriber Winbacks) - Churned Subscribers
- New Subscribers: The number of new subscribers acquired during the period.
- Winbacks: The number of previously churned subscribers who reactivated their subscriptions.
- Churned Subscribers: The number of subscribers who terminated all active subscriptions and have no remaining content entitlement during the period.
- Note: A subscriber is considered churned only if they have no remaining active subscriptions. If a subscriber has multiple subscriptions and has churned from one while still maintaining active entitlements on other(s), they will still be counted as an active subscriber.
How to Use the Net Subscriber Movement Metric in a Subscription Business
The Net Subscriber Movement metric is essential for understanding the overall growth of your subscriber base. You can use it to:
- Track Subscriber Growth: Monitor the net change in subscriber numbers to assess the overall health and growth of your subscription business.
- Evaluate Acquisition and Retention Efforts: Determine the effectiveness of your subscriber acquisition and retention strategies by analyzing the components of subscriber movement.
- Identify Trends: Identify trends in subscriber growth or decline and take proactive measures to address any issues.
- Forecast Subscriber Base: Use the metric to help forecast future subscriber numbers and plan for resource allocation.
FAQs
How does Net Subscriber Movement differ from Churn Rate?
Net Subscriber Movement shows the absolute change in subscriber numbers, while Churn Rate shows the percentage of subscribers lost relative to the starting number. They provide different perspectives on subscriber attrition.
What does a negative Net Subscriber Movement indicate?
A negative Net Subscriber Movement indicates that you are losing more subscribers than you are gaining, signaling potential problems with customer acquisition or retention.