End-of-Term Subscriptions aka Churn Baseline
End-of-Term Subscriptions shows who were able to leave – the people whose subscriptions needed to be charged during the month. It also shows how much recurring revenue could have been lost if they all had left.
Why is this important?
The customers who can churn create a baseline for all churn calculations – except for Net Churn.
When you see how many customers were included in the calculation, you can easily estimate if the numbers are reliable.
If there are less than 50 customers in the churn baseline, you shouldn’t make important business decisions based on your Churn Rate or CLTV.