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The other half is a ‘premium subscriber’ and pays €25 per month. Both customer groups have a churn volume of 10%. However, that 10% turns out very differently for the different newspaper groups: Loss of revenue ‘base’ = 10 lost subscribers x €10 euros = €100 Loss of revenue ‘premium’ = 10 lost subscribers x €25 euros = €250 The concept of value Switzerland WhatsApp Number List churn (or revenue churn ) is important here.

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How many sales do you lose in a certain period as a result of customers leaving? In formula Value churn rate lost customer revenue in period n / total revenue at the beginning of period n) x 100%. Of the total value churn of €350, a much larger part is caused by the premium subscriptions. Namely (250 / 350) x 100% = 71%. In other words, despite.

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The same volume churn percentage, the value churn can differ enormously due to the different subscription prices. Companies do not go bankrupt because of high volume churn, but because of high-value churn. The moral of this story is that it is essential to monitor (and above all) value churn in addition to volume churn. Companies with the subscription revenue model do not go bankrupt because of a high volume churn.

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