Charting Growth Dynamics
It is extremely valuable to visualize how your sales and churn are combining to produce your growth. Here we explain how build a simple growth curve and offer a downloadable spreadsheet template to help you below.
There are two building blocks of a simple growth curve analysis:
1. New subscribers (logos not dollars) by period (year or quarter).
2. Churned subscribers (logos not dollars) by period (year or quarter).
It can look something like this, where "Active Subscribers" is calculated as the cumulative subscribers minus those that have churned...
Growth Dynamics Data
After that, you simply make a line graph for your each series as below:
Now you will be able to see how the relationship between your sales and churn curves is driving your subscriber growth. This is a very important insight.