Churn is a critical metric for apps monetizing with subscriptions!

Subscriptions are a great way to grow a steady revenue stream - as long as you get more subscribers you'll make more money. Churn, on other hand, is a standard KPI used to measure how many (and how fast) subscribers are leaving and hurting your bottom line.

What's churn? Subscriptions that have been cancelled as a percent of total active subscriptions.

Daily Churn is the sum of Cancellations over the last 31 days (including the current day) divided by the Active Subscriptions for the day, 30 days before the starting day.

Example:

Churn on April 30th = Cancellations from March 31st to April 30th (including the starting and ending days for a total of 31 days) divided by the Active Subscriptions on March 31st.

Let's say you have 315 cancellations and 730 active subscriptions.

Monthly Churn:

The sum of Cancellations within the month (from the first to last day) divided by the Active Subscriptions on the 1st day of the month.

Example:

April's Monthly Churn = Cancellations from April 1st to April 30th divided by the Active Subscriptions on April 1st

Let's say you have 112 cancellations and 489 active subscriptions.

Minimizing your churn is extremely important when monetizing with apps. Learn more about subscription churn.