Refund Rate = (Number of Refunds / Total Purchases) x 100. Revenue Impact = Refund Rate x Gross Revenue.
2-4% is typical. Above 5% signals a problem. Above 8% may attract Apple or Google scrutiny. Common causes: confusing trial flows, aggressive paywalls that mislead users, and significant bugs in the premium experience.
Apple largely decides refunds unilaterally — you have limited control. You can provide consumption data (via the Consumption API) to help Apple make more informed refund decisions. The best strategy is preventing refund-worthy situations through clear pricing communication and good UX.
Make pricing crystal clear on the paywall, ensure users understand auto-renewal before subscribing, deliver value quickly during trials, and fix any confusing UX around subscription management. Also, handle customer complaints proactively through in-app support to resolve issues before users go to Apple for refunds.
A backend mechanism that limits how often users can trigger certain subscription-related actions (e.g., restore, trial start, promo redemptions) within a set time frame. This helps prevent abuse, fraud, and system overload.
When a previously churned or lapsed subscriber returns and resumes their subscription. Reactivations are a part of lifecycle marketing and often driven by email/push campaigns, pricing incentives, or product improvements.
Revenue generated on a consistent, repeatable basis through subscription renewals. Recurring revenue is the foundation of subscription businesses and a key metric for forecasting, valuation, and capital efficiency.
The continuation of a subscription after a billing period ends, either manually or through auto-renew. Renewals are a core component of recurring revenue and serve as key milestones in a user's lifecycle.
The percentage of subscribers who successfully renew at the end of their billing cycle. High renewal rates are indicative of strong product-market fit, perceived value, and customer satisfaction.
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