At Alunta we have decided to createa a dictionary for words and important terms related to running a subcription busniess. You are now reading about “Active users”.
The number of active users directly impacts the revenue of a subscription-based business. Active users are those who are currently using the service or product, and typically, they are paying subscribers. Therefore, the more active users a business has, the higher the subscription revenue. In addition, active users often provide a source of predictable and recurring revenue, which is essential for the business's sustainability and growth. They also contribute to customer lifetime value, as the longer a user stays active, the more revenue they generate for the business.
Tracking the number of active users is crucial for a subscription service as it provides insights into customer engagement and business health. A high number of active users indicates a valuable and engaging service, leading to customer retention and steady revenue. Conversely, a low or rapidly declining number of active users suggests potential issues with the service, such as lack of value or customer dissatisfaction. Monitoring this metric allows businesses to quickly identify and address such issues, thus improving their service and overall customer satisfaction.
Check out other topics in our subscription dictionary below. We've gathered the ones we find most relevant in relation to active users.
