Definition
The total time a user remains subscribed before churning. Often used in combination with revenue data to calculate lifetime value (LTV), and forecast future earnings per subscriber.
Average Customer Lifetime = 1 / Churn Rate. For monthly churn: Lifetime in months = 1 / Monthly Churn Rate. For example: 1 / 0.05 = 20 months. For annual churn: Lifetime in years = 1 / Annual Churn Rate. For example: 1 / 0.30 = 3.3 years.
Focus on the moments that matter: strong onboarding in week 1, consistent engagement reinforcement in month 1-3, and renewal-period retention tactics. Users who build habits with your app early stay dramatically longer. Also reduce involuntary churn with good billing retry logic — it is the easiest way to extend average lifetime.
Yes, significantly. Annual subscribers lock in for 12 months minimum, while monthly subscribers can churn each month. Typical customer lifetimes: monthly plans see 8-15 months average, while annual plans see 1.5-3 years. This is a major reason to promote annual plans — they mechanically increase customer lifetime.
If you have less than 12 months of data, use cohort survival curves to project lifetime. Track what percentage of each monthly cohort remains subscribed at 1, 2, 3 months etc., then fit a decay model to project forward. Be conservative in projections — most apps overestimate lifetime early on.
The act of ending a subscription, either by the user or automatically due to billing failure. Understanding cancellation timing and reasons is key for designing retention strategies, deflection flows, and win-back campaigns.
A short feedback form presented during the cancellation process to understand why a user is choosing to leave. These insights inform product improvements, pricing strategy, and targeted win-back efforts.
The percentage of subscribers who cancel or do not renew their subscription over a given time period. Churn can be voluntary or involuntary and is a core metric for measuring retention health and forecasting revenue growth.
The ratio of users who click on a specific call-to-action (e.g., email link, push notification, paywall button) versus those who viewed it. CTR is a key engagement metric for evaluating creative performance and funnel effectiveness. Click-through-rate originated in the email and banner ad world, where everything was on a desktop. With mobile, some companies now call this same metric tap-through-rate since people are tapping on their phone vs clicking on desktop, but at the end of the day it's really the same type of measurement.
A method of analyzing user behavior by grouping users based on shared characteristics — most often the date they first installed or subscribed. This allows teams to compare retention, LTV, and monetization trends across cohorts over time.
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