Investors wish. It can predict the future and reduce uncertainty about how a business will grow. Subscribers’ retention on the annual plan is directly related to the price of the product. However, it comes with a huge delay, for example, an annual plan is only visible after one year of customer registration.
Therefore, the best predictors for re-subscriptions are the engagement rate of your existing subscribers. Let’s take a look at which engagement metrics get the most traction from investors.
Long-term participation at the end of the subscription
There are many engagement metrics to look at. What matters most is how your subscribers engage with the core app functionality over time, especially towards the end of their subscription. If they’re actively using it, that means they’re getting the expected (or better) value from the product, increasing their chances of renewing for another year. The obvious metric to evaluate is how often your user opens the app at the end of the period in question.
Start studying these engagement statistics from your existing users to find customer retention data points that have strong investor appeal.
For a more in-depth analysis, see Core App Functionality Usage During These Times. This is where group participation analysis comes in handy; Users who started using an application 12 months ago can see what share they are unlocking and if they are using the main function three, six, nine and 12 months after the first use. For example, when you see a 60% churn rate in the third month after installation, the team is clearly more than 40% more likely to sign up again in nine months because they are more likely to sign up. Canceled their annual subscription within these first three months. This is where the direct relationship between engagement and retention comes into play.
Frequency of interactions with main application features
To make a strong argument about the value customers get from the product, investors want to see how many core app functionality interactions occur on average over the lifetime of a set of subscribers. For example, interactions beyond opening your app mean subscribers are knowingly looking for value. Every launch should define its “key engagements” and help guide users to this core activity within the product.