CLV & Cohort Analysis

Subscription CLV: Handling Pause Periods

Pauses complicate retention math and revenue forecasting in subscription businesses. Check how to treat paused time, reactivations, and cohort metrics without bias.

During an account pause, the customer is best treated as ______ for churn rate calculations.

temporarily censored or excluded from the at‑risk denominator

permanently churned

double counted in two cohorts

newly acquired

Pauses remove billing risk while paused; censoring avoids overstating churn. Counting them as churned biases the metric.

When a paused subscriber resumes, revenue attribution should ______.

be backfilled into the pause months

resume in the original cohort timeline with gaps for paused periods

be split evenly across all prior months

restart a brand‑new cohort

Keeping original cohort membership preserves comparability; you skip revenue in paused months rather than rewriting history.

Which metric helps estimate return from pause?

time on site per session

reactivation hazard over time since pause start

gross impressions

creative recall score

Reactivation hazard models the probability of resuming per unit time. Media metrics do not measure resume likelihood directly.

For retention rate, a common mistake is keeping paused accounts in the denominator. The fix is to ______.

count them as downgraded ARPU

treat pauses as refunds

exclude paused months so the at‑risk set reflects billable accounts

halve the churn threshold

Denominators should include only billable at‑risk accounts; otherwise retention is understated. Pauses are not refunds.

How should prepaid revenue spanning a pause be handled?

recognize revenue as earned; no new revenue posts during paused months

recognize all revenue at purchase date

void historical invoices

spread revenue into paused months equally

Accrual aligns revenue with service delivery; paused months have no service, so no recognition then.

In forecasting, paused time typically ______ customer lifetime.

forces churn at next bill

shortens tenure mechanically

adds extra chargeable months

extends elapsed calendar time without adding billable tenure

Pauses add gap time; tenure should reflect billable service months, not total calendar months.

Which feature often improves pause‑aware CLV models?

browser user‑agent string

raw IP address octets

pixel viewport width

time‑since‑pause and count‑of‑past‑pauses per customer

Behavioral pause features capture reactivation propensity. Device minutiae add noise and privacy risk.

If pauses are allowed indefinitely, what policy reduces zombie accounts?

removing billing history

raising CAC

auto‑expiration after a maximum pause window with notice

forcing annual prepay on all users

A cap prevents indefinite inactive stock and clarifies status, aiding metrics. The other options don’t address the issue.

For LTV reporting, ARPU should be computed over ______.

calendar months since signup

active billable months only, excluding paused periods

all months including refunded ones

months since last login

ARPU relates revenue to paying exposure; paused months are non‑paying time and would deflate ARPU if included.

Which cohort plot best displays pause gaps?

heatmap of monthly retained share with zero‑revenue cells during pause months

pie chart of devices

scatter of pixel loads

stacked bar of ad spend

A retention heatmap reveals missing revenue months as gaps, clarifying pause effects on churn curves.

Starter

Review how pauses affect denominators and cohort timelines.

Solid

Good job—refine your reactivation and billing logic.

Expert!

Expert handling of pause logic, reactivation, and bias controls.

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