Subscription Dictionary

Terms and indicators
key to business by
subscription

Terms and indicators key to business by subscription

List of subscription-related words

Subscription
contract concluded with the supplier that allows the customer to receive a product or access a service on a recurring basis
Customer acquisition
This is the cost associated with the acquisition of a customer (COCA): marketing and communication expenses, salary based on the time devoted to sales… The simplified method for calculating your COCA: divide the cost of your acquisition campaigns by the number of customers acquired through these campaigns. If you do not know these details, allow at least €10 for the launch of your business.
Affiliation
ecommerce affiliation is a marketing /distribution technique that is unique to the Internet. Affiliation is the principle by which a retail website offers to promote the products or services of a network of affiliated partner sites through banners or text links
Postage
This is the postage cost for a box.
Average Revenu Per User (ARPU)
Average revenue per user
Back Office
this is the part of your site that is not visible to the general public. It consists of tools for configuration, administration etc.
Net margin
within a subscription-based box business, the net margin is calculated on the first month of subscription and corresponds to the gross margin minus the cost of customer acquisition (COCA).
Retained profit
within a subscription-based box business, the retained profit corresponds to the net margin to which the cost of customer acquisition is added (COCA).
Churn
“Churn” is the phenomenon of the loss of subscribers, generally measured by the churn rate. Observation of the churn rate is a very important piece of data when you are aware of the impact that generating customer loyalty has on profitability.
Cost Of Good Solds (COGS)
within a subscription-based box business, the “cost of goods sold” is the cost of all of the products contained in your customer shipment. Within commercial companies (for subscription-based boxes), it corresponds to merchandise purchases, minus the variation in stock-in-trade. Within manufacturing companies (for subscription-based restocking), it corresponds to the consumption of raw materials and the labour fees associated with production.
Customer Relationship Management (CRM)
Customer Relationship Management groups together all of the marketing or support mechanisms and operations, the aim of which is to optimise the quality of the customer relationship, to generate loyalty and to maximise the revenue or margin per customer.
Growth
This is the maximum rate of growth that you can reasonably generate from one month to the next, for example 25%.
Customer LifeTime Value (CLTV)
the customer lifetime value is the total of the expected updated profits, taken as an average over the lifetime of a typical customer.
Days Sales Outstanding (DSO)
the “Average Payment Period” (APP) corresponds to the invoiced revenue that is not yet collected. The DSO is an integral part of the Working Capital Requirement (WCR).
Unsubscription
This is the percentage of customers lost each month (subscriptions reaching their expiration date without being renewed or cancelled subscriptions).
Subscriber debt
the Deferred Revenue (DR)
Direct to Consumer
The direct to consumer approach
Dunning
Automatic re-attempt to withdraw
Customer Lifetime
Front office
Packaging
This is the cost for the packaging of your box, including its personalisation.
Logistics
this is the part of the site that is visible to the general public.
Logistique
This is the cost associated with the preparation of a box for shipping, including the addressing and stamping.
Monthly Recurring revenue (MRR)
the monthly recurring revenue corresponds to the provisional amount of revenue generated each month by subscriptions.
Mobile First
“Mobile First” is a web design concept that is optimised for mobile devices. The web pages are first created for smartphones and tablets and are then developed in order to adapt them for computers.
Mobile Only
“Mobile Only” is an approach that consists of being present almost exclusively via a smartphone application.
Average shopping cart
average value of purchases made by a customer during a visit to a physical or virtual point of sale. The average shopping cart is also analysed on the basis of the composition of this shopping cart divided by product category.
Personalisation
This is the cost of the personalised elements added to your box: silk paper, printed media etc.
Payment Service Providers (PSP)
Payment service providers allow a retailer to accept payments online, generally by bank card
Sale price
This is the monthly sale price of your box, including shipping fees.
Gross product
This is the cost of the products included in a box, excluding packaging.
Rebilling
rebilling refers to the renewal of the initial paid monthly subscription.
Subscriber Life Cycle
Life cycle of a subscriber
Subscriber Relationship
Relationship with a subscriber
Subscription & Recurring Billing Management (SRBM)
Management of subscriptions and recurring payments. An SRBM solution is a platform that enables the management of complex scenarios and new requirements associated with subscription business models.
Rate of acquisition
allows you to measure the effectiveness and the profitability of marketing campaigns. It is obtained by dividing the campaign budget by the number of customers of meetings acquired.
Conversion rate
the conversion rate measures the relationship between individuals who have performed the action that was ultimately sought within the scope of the marketing campaign and the total number of individuals reached by the campaign. The nature of the conversion taken into account depends on the nature and the objectives of the campaign, as well as the measurement or tracking possibilities, however, the conversion rate often refers to a purchase.

Abonnement

contrat passé avec un fournisseur qui permet au client de recevoir un produit ou d’accéder à un service de manière récurrente
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