Re-Activation MRR is MRR gained from customers that resume a paid subscription after having cancelled.
This metric highlights the effectiveness of your re-engagement and win-back strategies to regain lost customers. It also allows you to spot customers without a recurring use-case for your product. Through experimenting, you can understand what motivates these customers to return.
Average Reactivation MRR x Number of Reactivating Customers
To calculate Re-activation MRR, multiply the Average Reactivation MRR by the Number of Reactivating Customers.
Develop targeted campaigns with personalised offers or messages to attract former customers. Understand why customers initially cancelled their subscriptions to address these issues in re-engagement efforts. Also, use feedback from reactivated customers to improve the product or service and prevent future churn.
A misconception is that reactivation is a one-time effort; it is not. Winning back customers requires ongoing engagement and continuous improvement of the customer experience.