Metric Definition
Subscription tier effectiveness
Track from
Plan performance analysis
Plan performance analysis evaluates how each subscription plan contributes to revenue, growth, and retention. It compares plans on metrics such as adoption rate, ARPU, churn, and upgrade/downgrade patterns to reveal which tiers are working and which need restructuring.
5 min read
What is plan performance analysis?
Plan performance analysis measures the health and contribution of each subscription tier in your pricing structure. Rather than looking at aggregate revenue or churn, it breaks these figures down by plan so you can see which tiers attract customers, which retain them, and which generate the most revenue per subscriber.
This analysis is essential because pricing and packaging decisions are among the highest-leverage choices a subscription business makes. A plan that attracts many sign-ups but churns heavily may have a positioning problem: it promises something the product does not deliver at that tier. A plan with excellent retention but low adoption may be priced too high or insufficiently differentiated from the tier below.
Plan analysis also reveals cannibalisation. If a newly launched mid-tier plan is growing but the premium tier is shrinking by the same amount, the business may be trading down rather than expanding the market. Tracking plan upgrade rate alongside plan-level churn surfaces these dynamics.
How to measure plan performance
There is no single formula. Instead, compare each plan across a consistent set of metrics:
- Plan Revenue Share = (Plan MRR / Total MRR) x 100
- Plan Churn Rate = (Churned Subscribers on Plan / Start-of-Period Subscribers on Plan) x 100
- Plan ARPU = Plan MRR / Active Subscribers on Plan
- Plan Upgrade Rate = Subscribers upgrading from this plan / Subscribers on this plan
Display these side by side in a matrix so you can immediately spot the outliers: the high-churn plan, the low-ARPU plan that dominates subscriber count, or the premium tier with excellent retention but minimal adoption.
How to improve plan performance
- 1
Create clear value steps between tiers
Each plan upgrade should unlock a feature or limit increase that customers genuinely need at the next stage of growth. If the difference between tiers is unclear, customers default to the cheapest option and never upgrade.
- 2
Consolidate or retire underperforming plans
A long tail of legacy plans adds billing complexity and fragments the subscriber base. Migrate subscribers from discontinued plans to current tiers, offering incentives where necessary.
- 3
Test pricing changes on new sign-ups first
Before repricing an existing plan, launch the new price to new subscribers only and compare conversion and retention metrics against the cohort on the old price. This reduces risk and provides clean data.
Related metrics
Plan Upgrade Rate
Tier migration frequency
SaaS MetricsMetric Definition
Plan Upgrade Rate = (Upgrades in Period / Active Subscribers at Start of Period) x 100
Plan upgrade rate measures the percentage of subscribers who move to a higher-value plan within a given period. It is a key indicator of product value realisation and expansion revenue potential, representing the most capital-efficient form of revenue growth because upgrades require no acquisition cost.
Average Revenue Per User
ARPU
SaaS MetricsMetric Definition
ARPU = Total Revenue / Number of Active Users
Average revenue per user (ARPU) measures the mean revenue generated per user or account over a given period. It is a critical metric for understanding monetisation efficiency and for connecting pricing strategy to revenue outcomes.
Add-on Revenue Analysis
Incremental revenue from optional extras
SaaS MetricsMetric Definition
Add-on Revenue Share = (Add-on Revenue / Total Subscription Revenue) x 100
Add-on revenue analysis measures the total revenue generated from optional extras attached to subscription plans. It reveals which add-ons drive the most incremental value, how attach rates evolve over time, and whether your catalogue structure is converting upsell opportunities effectively.
See which plans drive growth and which hold it back
Build a metric tree that decomposes MRR by plan, linking each tier to its own ARPU, churn, and upgrade metrics so pricing decisions are driven by data rather than intuition.