This might help too: for really crap services (say, weightloss or the like), where people sign up and then pretty much never use the service, a typical average churn rate is 3 months. ie. it takes people 3 months on average to unsubscribe from a service they don't use.
Are you speaking out of experience or do you have some stats? It seems unlikely that people take at least 3 months to unsubscribe a service they never use.
Out of experience with 2 large services. Can't share stats, sorry. It may seem unlikely, but it's true :) I'm talking average, many take up to 6 months. Now you know why there are so many ads for crappy services online :) ps: I didn't say "at least", I said "on average".
The math of subscription services generally goes like this: acquiring a paying customer is going to cost you about 15-60$ each (for typical lifestyle services). So lifetime value needs to be more than that. Once you're live, you tweak those numbers, make acquisition more efficient and increase lifetime value.
Comments
This might help too: for really crap services (say, weightloss or the like), where people sign up and then pretty much never use the service, a typical average churn rate is 3 months. ie. it takes people 3 months on average to unsubscribe from a service they don't use.
Are you speaking out of experience or do you have some stats? It seems unlikely that people take at least 3 months to unsubscribe a service they never use.
Out of experience with 2 large services. Can't share stats, sorry. It may seem unlikely, but it's true :) I'm talking average, many take up to 6 months. Now you know why there are so many ads for crappy services online :) ps: I didn't say "at least", I said "on average".
The math of subscription services generally goes like this: acquiring a paying customer is going to cost you about 15-60$ each (for typical lifestyle services). So lifetime value needs to be more than that. Once you're live, you tweak those numbers, make acquisition more efficient and increase lifetime value.