E-commerce · Economics

Subscription churn and cohort decay

Published · Reviewed by The Diligence Standard Team · Updated

Average MRR can conceal deteriorating cohorts, discounts, failed payments and involuntary churn.

Records to reconcile

  • Subscription events
  • Payment success history
  • Cohort revenue and contribution

Warning signal

Recent acquisition masks weakening retention or legacy customers dominate revenue.

Transaction impact

Forward recurring revenue may be below the trailing run rate.

Response

Value matured cohorts separately and stress collection and churn.