What’s a Good Monthly Renewal Rate?

In the context of subscription-based app businesses, renewal rates are a crucial metric indicating the long-term value provided to customers and the lifetime value (LTV) expected from them. An analysis of 10,000+ iOS and Android subscription apps revealed that the median first renewal rate for monthly subscriptions is 56%, with rates improving over time, suggesting that retaining customers after the first month increases their likelihood of continued renewal. To enhance renewal rates, businesses should evaluate their pricing and offerings, engage with customers to understand their needs, and analyze customer data to identify high-risk segments. Proactive strategies such as offering discounts or personalized messages can mitigate churn, while tools like RevenueCat offer insights through pre-built charts and integrations with platforms like OneSignal, Braze, and Iterable. Additionally, testing different subscription durations and feature packages can help determine the most effective strategies, taking into account factors such as customer affinity and market conditions.