Calculation
The transactional value of all subscriptions identified by the churn prediction algorithm as having a 75% or higher probability of not renewing.
Example:
10,000 subscriptions are detected as having a 75% or higher probability of churning before their next payment. The sum value of the most recent transactions for these subscriptions is $60,000. This is the sum presented as being at 'high risk of churn'
Note that the total revenue at risk may be higher. This metric only describes the sum that is highly likely to churn.
How should I use this metric?
This metric provides a clear and reliable prediction of the upcoming impact of churn on your revenue stream. It should help you clarify the following:
- How advertising budgets should be adjusted to offset this impact with new subscriptions
- How much value you should be willing to discount to deflect an acceptable percentage of these subscription churns.
This metric is presented on your Retain dashboard.
Understanding churn prediction
If you would like to better understand how your churn prediction algorithm works, check out this guide.