Glossary

Learn about subscriber retention, engagement, and lifecycle metrics with clear definitions and practical examples.

Winback Rate

Upgrade/Downgrade Rate

Trial-to-Paid Conversion Rate

Retention Rate Lift

Registered to Subscribe

Reactivation Rate (Resubscribers)

Payback Period

Gross Revenue Retention (GRR)

Activation Rate

Upsell

Net Revenue Retention (NRR)

Monthly Recurring Revenue (MRR)

Customer Retention Rate

Lifetime Value (LTV)

Customer Acquisition Cost (CAC)

Cohort Retention Rate

Churn Rate

Churned MRR (Churned Monthly Recurring Revenue)

Average Revenue Per User (ARPU)

Churn Score

Annual Recurring Revenue (ARR)

Trial-to-Paid Conversion Rate

What is trial-to-paid conversion rate?

Trial-to-paid conversion rate measures the percentage of users who move from a free trial to a paid subscription. It shows how effective a product experience is at demonstrating value during the trial period and directly reflects the strength of the onboarding process.

Why trial-to-paid conversion rate matters

  • Revenue growth: Higher conversion means trials are successfully turning into recurring revenue streams.
  • Product-market fit: A low rate often signals gaps in product experience, positioning, or pricing.
  • Retention predictor: Subscribers who convert after a strong trial experience are more likely to stay engaged long-term.

How to calculate trial-to-paid conversion rate

Trial-to-Paid Conversion Rate = (Number of Trial Users Who Converted ÷ Total Trial Users) × 100

For example, if 1,000 users start a trial and 320 become paying subscribers, the trial-to-paid conversion rate is 32%.

Inclusions and exclusions

  • Include: All users completing a free trial and opting into a paid subscription.
  • Exclude: Users on free plans without a defined trial period, or those given extended access via promotions not tied to standard trials.

Trial-to-paid conversion rate in subscription businesses

In subscription-driven models, this metric is a critical bridge between acquisition and retention. Trials are often the first deep interaction a user has with premium content or features. Tracking conversion helps businesses understand whether they are spotlighting enough value early on. With Subsets, companies can connect conversion rates to downstream engagement, testing how different onboarding flows, pricing prompts, or feature unlocks impact the likelihood of conversion and ultimately lifetime value.

The depth and breadth of the results analysis we can generate from Subsets has been invaluable. We are aiming to turn validated experiments into 'always on' and let Subsets select subscribers for targeting and trigger the campaigns.

Andy Wilson
Head of Subscriber Retention @ Daily Mail

Grow revenue from your existing subscribers

Learn how leading subscription media businesses manage retention with AI.

Thanks for
requesting a demo!
We will reach out to you soon!
Oops! Something went wrong while submitting the form.