Subscription businesses are run on a handful of numbers. Tracking them from the first paying customer keeps decisions grounded in facts.

The core numbers

Start with these four.

  • Monthly recurring revenue: the subscription income you can expect each month
  • Churn: the share of customers or revenue lost each month
  • Customer acquisition cost: what it costs to win one customer
  • Lifetime value: what an average customer pays before leaving

How to read them

Growing revenue with high churn is a leaking bucket. Lifetime value should comfortably exceed the cost of winning a customer, or growth loses money.

Keep it simple

Measure the same way every month and write down how each figure is calculated. A consistent simple number beats a clever one nobody trusts.