Two Key Metrics You Won’t Find in the State of Subscription Apps Benchmarks

The State of Subscription Apps 2023 report offers in-depth insights into in-app subscription performance benchmarks, but it intentionally omits Realized Lifetime Value (LTV) and Customer Acquisition Costs (CAC) due to their variable nature. These metrics are crucial for subscription app businesses as they provide key performance indicators that help in understanding the value and cost of acquiring and retaining customers. LTV is the total revenue generated by a customer over their relationship with the app, guiding businesses in resource allocation and pricing strategies, while CAC represents the cost of acquiring a new customer, influencing marketing and sales strategies. Monitoring the LTV/CAC ratio can reveal the efficiency of marketing expenditures. Although benchmarks for these specific metrics are not provided due to their variability, the report includes benchmarks for other essential metrics such as activation, conversion, renewal, and retention rates, as well as benchmarks for five app categories: Health & Fitness, Utilities, Productivity, Photo & Video, and Lifestyle.