Renewal rate

Subscription renewal rate

Retention

The share of subscriptions due to renew in a period that actually renew and get paid.

What is Renewal rate?

Renewal rate answers a simple question: of the subscribers who were supposed to renew, how many did? It counts paid renewals against renewals that were due. Look at it by order number. The overall rate hides the pattern that matters most. The drop from the first order to the second is usually the biggest, and it gets smaller as subscribers settle in. A table of renewal rates for order 2, 3, 4 and onward shows exactly where subscribers leave. What counts against it: - Cancellations before the renewal. - Failed payments that are never recovered. - Skips, depending on how you count. Many brands report skips separately, because a skip delays a renewal without losing the subscriber. Renewal rate vs retention rate. Retention rate usually tracks customers still active after a set time. Renewal rate tracks billing events, so it reacts faster and points to specific orders. How to raise it: - Make the first box great and explain how to use the product. - Send a clear reminder before each charge, with easy skip and swap options. - Recover failed payments with retries and card update links. - Offer a pause or a frequency change when a subscriber tries to cancel. How Chargezen handles it: Chargezen Subscriptions analytics report renewal rates for your subscribers, so you can see which orders lose the most people.

Formula

Renewal rate = Subscriptions renewed and paid ÷ Subscriptions due to renew × 100

Example

In March, 1,000 subscriptions were due to renew. 870 were charged successfully, 60 were cancelled and 70 failed payment and were not recovered. The renewal rate is 87%.

Why Renewal rate Matters

Every point of renewal rate compounds over many orders, so small gains early in a subscription add up to big gains in customer lifetime value.

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