User Renewal Rate measures the percentage of users renewing subscriptions, indicating customer satisfaction, loyalty, and product value. For Product Managers, optimising this rate is key for business viability and growth, involving improving product features, support, and highlighting renewal benefits to sustain revenue and foster a loyal user base.
Methodology:
- Define the renewal event,
- Track subscription and renewal data,
- Identify the cohort for analysis,
- Calculate the number of renewal,
- Calculate the user renewal rate,
- Analyse and interpret the results,
- Segment the analysis,
- Identify factors influencing renewal rates,
- Implement strategies, monitor, and adjust.
Benefits:
- Indicator of customer satisfaction and loyalty,
- Stable revenue stream and growth forecasting,
- Feedback loop for continuous improvement.
Limitations:
- Complacency risk with high renewal rates,
- Challenges in addressing non-renewing users,
- Variability across segments and products.