Subscription & Recurring Revenue
Recurring revenue and subscription commerce terminology covering churn, MRR, retention strategies, and subscription-first business models.
The metrics that decide whether your brand scales.
Recurring revenue and subscription commerce terminology covering churn, MRR, retention strategies, and subscription-first business models.
Understanding subscription & recurring revenue terms is essential for any DTC operator looking to measure and improve their ecommerce performance.
Use the terms below as reference when analyzing your campaigns, reviewing reports, or communicating with your team.
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Monthly Recurring Revenue
MRRThe predictable, normalized monthly revenue from active subscriptions.
Annual Recurring Revenue
ARRMRR × 12, representing yearly subscription revenue.
Subscribe-and-Save
Automated recurring delivery of consumable products at a discount (typically 10-20% off).
Curation Subscription
Delivers curated, varied product selections each shipment based on customer preferences.
Membership Subscription
Offers exclusive benefits like discounts and early access rather than recurring product delivery.
Dunning
The process of recovering failed subscription payments through retry logic and communication.
Involuntary Churn
Subscription cancellations caused by failed payments rather than customer choice.
Voluntary Churn
Intentional cancellations initiated by customers.
Subscriber Portal
A self-service interface where subscribers manage their accounts and preferences.
Skip/Pause
Allowing subscribers to temporarily skip an order or pause without canceling.
Cancellation Flow
The process a subscriber goes through when canceling, often including retention offers.
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