Active subscriptions in a SaaS business is a metric that measures the number of paying customers for a given time period. It means that the said subscription is currently in effect and has not been cancelled by the customer. Tracking this metric helps to understand the health of a SaaS subscription and billing management . Growth in this metric implies that the product is valued and has an appeal in the market and that people and organizations are willing to pay for its services. This metric can also be used to understand the customer lifetime value (CLV) which further helps to understand the market value of the product or service.
An active subscription also means that it is a live subscription and in this status the customer has access to all subscribed features and services. Active subscription reports help track the customer subscription statuses from one place which further helps in effective and efficient subscription management.
In the subscription and billing management business, active subscription numbers are essential as it helps in developing strategies that enhance the product’s engagement and retention among users. It is the source of recurring revenue and can be used to invest in further growth and development of the business. It also helps to build and maintain a loyal customer base by providing value on an ongoing basis.