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)

Upsell

What is upsell?

Upsell is the practice of encouraging existing customers to move from their current subscription or product tier to a higher-value option. This could mean shifting from a basic to a premium plan, adding extra features, or increasing the scope of usage. The goal of upselling is to expand revenue from current customers while improving the overall value they receive.

Why upsell matters

  • Revenue expansion: Upselling is one of the most cost-efficient ways to increase recurring revenue since it leverages existing relationships rather than acquiring new customers.
  • Customer lifetime value (LTV): Successful upsells extend LTV by deepening the customer’s investment in your product or service.
  • Stronger product adoption: Customers who upgrade often engage more deeply with advanced features, increasing retention.

How to implement upsell strategies

Effective upsell strategies typically combine data-driven targeting with timely offers. Examples include:

  • Identifying engaged subscribers who consistently hit usage limits and offering them higher-tier packages.
  • Bundling premium content or exclusive features at a discounted incremental price.
  • Using real-time triggers when customer behavior indicates readiness for an upgrade (e.g., frequent access to gated content).

Inclusions and exclusions

  • Include: Tier upgrades, premium add-ons, feature unlocks, and increased account limits.
  • Exclude: Cross-sell offers and one-time purchases not tied to subscription value.

Upsell in subscription businesses

For subscription businesses, upselling is a critical growth lever. Instead of focusing only on acquisition, it builds revenue by helping customers progress naturally along a value path. Subsets enables publishers and subscription businesses to execute upsell strategies by identifying signals of readiness, such as high engagement or consistent usage, and automatically delivering tailored upgrade offers. This ensures upsells feel relevant and timely, improving acceptance rates while contributing to both retention and revenue growth.

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

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