View Single Post
Old 06-10-2009, 03:23 PM  
TheDoc
Too lazy to set a custom title
 
TheDoc's Avatar
 
Industry Role:
Join Date: Jul 2001
Location: Currently Incognito
Posts: 13,827
When people brag about 50% retention, it's trial to conversions.. When they talk about rebill %'s, it's first months sales.

Just because I have 4 guys join, 3 cancel, that appears to be a 25% rebill rate, but if that one guy rebills 9 months.. my retention rate isn't 25%. Your graph doesn't factor in the compounding rebills, which are not a steady 50% for any company.

Time and rebill cycles are a factor in the retention rates of sites. And with time, you should convert people to money values.


If you want to use 50% retention numbers, you would use sales+rebills vs. the cancels after the day ends. If you can keep your cancels 50% or less of your sales+rebills, you are growing.



But rebills are king And we aren't anything like the mainstream business...
__________________
~TheDoc - ICQ7765825
It's all disambiguation
TheDoc is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote