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What is Average Revenue per New Subscription metric in RevenueStory?

Average Revenue earned from new Subscriptions during a specific period.

Explanation of metric

Point in time indicator of the revenue earned per New paid Subscription during the period.

How it's measured

Average Revenue per New Subscription = [(MRR of Newly Activated Subscriptions)/ (No. of Activations during the period)]

Note: Only the first Activation date is considered. Subsequent reactivations are not considered

Reading

Up: Good

Interpretation

  • It indicates if the New Subscriptions are high-value Customers. This metric can be optimized by adding New Customers in a high-value Plan or by periodically increasing Plan pricing.

  • Example: In a given period, 15 new Subscriptions are created for Plan A ($10/month) and 25 new Subscriptions are created for Plan B ($20/month) MRR of Newly activated Subscriptions = (15X10)+(25X20) = $650 No. of Activations during the period = (15+25) = 40 Average Revenue per New Subscription = (650/40) = $16.25

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