Get started with subscriptions
Subscriptions help you manage products or services that customers are billed for on a recurring basis. You can use subscriptions for fixed recurring charges, one-time subscription charges, and usage-based charges.
Use the Subscriptions work area to:
- monitor subscription metrics, such as monthly recurring revenue (MRR), booking, churn rate, and net revenue retention (NRR)
- create and manage subscription plans
- create subscriptions for customers
- edit active subscriptions
- add usage to usage-based subscriptions
- review invoices and future payments created from subscriptions
- analyze subscription performance using subscription metrics and reports
To open the Subscriptions work area, open Menu and select Subscriptions.
Subscription dashboard
The Subscriptions page gives you a high-level view of subscription revenue, bookings, churn, retention, burn rate, customer acquisition cost, and customer lifetime value.
The dashboard uses the same calculations as subscription reports. Use the report links on each chart to review the customers, subscriptions, items, and periods behind the dashboard numbers.
The following metrics are available:
- MRR: Monthly recurring revenue from recurring subscription lines. Yearly recurring charges are spread evenly across 12 months. One-time and usage lines are excluded.
- Booking: The value of subscription orders booked in the selected period. Fixed-term subscriptions are counted for their full term. Endless subscriptions are counted as one year of recurring value. Usage lines are excluded.
- Churn Rate: The percentage of active subscription customers who churned in a completed month. A customer churns when an active subscription ends or is canceled and the customer has no other active subscription continuing into the following month.
- NRR: Net revenue retention for existing subscription customers. New customers are excluded.
The dashboard also includes the following charts:
- Monthly Recurring Revenue Over Time: Compares MRR across periods and provides links to the Monthly recurring revenue report and Customer base overview report.
- Booking vs. Churn Rate Over Time: Compares subscription booking and churn trends.
- MRR vs. Burn Rate: Compares recurring subscription revenue with cash burn.
- Avg. Customer Acquisition Cost & Customer Lifetime Value: Compares the average cost of acquiring a customer with customer lifetime value.