What is the Campaign Conversion Rate Metric?
The Campaign Conversion Rate metric represents the percentage of subscriptions that renewed at full price after previously redeeming a discount coupon. It measures the effectiveness of discount campaigns in retaining subscribers at full price after the promotional period.
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 the Campaign Conversion Rate is:
Campaign Conversion Rate = (Renewals at Full Price after Discount / Total Coupons Redeemed)
- Renewals at Full Price after Discount: The number of subscriptions that renewed at the regular, non-discounted price after previously using a discount coupon.
- Total Coupons Redeemed: The total number of coupons redeemed during the campaign.
How to Use the Campaign Conversion Rate Metric in a Subscription Business
The Campaign Conversion Rate metric is crucial for evaluating the long-term effectiveness of discount campaigns. You can use it to:
- Assess Discount Campaign ROI: Monitor the conversion rate to determine if discount campaigns are effectively converting users to full-price subscribers.
- Optimize Pricing Strategies: Use the conversion rate to inform pricing strategies and understand the long-term impact of discounts on revenue.
- Forecast Post-Campaign Revenue: Use the conversion rate to predict the potential revenue from full-price renewals following a discount campaign.
FAQs
Why is it important to track renewals at full price after discounts?
Tracking these renewals provides insight into the long-term value of discount campaigns and helps determine if they are attracting and retaining valuable subscribers.
How does Campaign Conversion Rate differ from Trial Conversion Rate?
Campaign Conversion Rate measures the conversion of discounted subscriptions to full-price renewals, while Trial Conversion Rate measures the conversion of free trials to paid subscriptions. They measure different stages of the customer journey.