Glossary

Subscription terms, in plain words

Each term defined in a sentence, with a worked example and how Zubs fits in, from billing anchors to dunning and churn rate.

01Plans & billing

How subscriptions are sold and billed

Selling plans, prepaid terms, build-a-box, billing anchors and cutoffs: the building blocks of every subscription offer.

  • Billing anchor

    A billing anchor fixes the day subscriptions renew, such as the 1st of each month or every Tuesday, whatever the signup date. Definition and an example.

    In Zubs

    • Prepaid & fixed-date plans
  • Build-a-box

    A build-a-box subscription lets customers pick what goes into each recurring box from a menu you curate. Definition, an example and how it works in Zubs.

    In Zubs

    • Build-a-box
  • Cutoff date

    A cutoff date is the last moment to place or change a subscription order for the next delivery. Definition, an example and how Zubs handles it.

    In Zubs

    • Prepaid & fixed-date plans
  • Prepaid subscription

    A prepaid subscription charges once for several deliveries, such as 6 months paid upfront with monthly shipping. How it works, an example, the trade-offs.

    In Zubs

    • Prepaid & fixed-date plans
  • Selling plan

    A selling plan is how Shopify defines buying a product on repeat — billing, delivery and price. What's inside one, an example and how Zubs creates them.

    In Zubs

    • Prepaid & fixed-date plans

02Metrics

The numbers that show retention

Churn, skips and recurring revenue: what each one measures and how to calculate it.

  • MRR

    MRR is the recurring revenue your active subscriptions bring in per month, normalized to a monthly amount. Formula, a worked example and common pitfalls.

    In Zubs

    • Analytics
  • Skip rate

    Skip rate is the share of due subscription orders that are skipped instead of billed. The formula, a worked example and how to read it next to churn.

    In Zubs

    • Analytics
  • Subscription churn rate

    Subscription churn rate is the share of subscriptions cancelled in a period: cancellations ÷ active subscriptions at the start. With a worked example.

    In Zubs

    • Analytics

03Failed payments

When a renewal doesn’t go through

Why recurring payments fail, how dunning retries them and what is lost when they stay unpaid.

  • Dunning

    Dunning is retrying failed subscription payments and telling customers how to fix them. How it works, a worked example and how Zubs handles it.

    In Zubs

    • Dunning
  • Involuntary churn

    Involuntary churn is subscriptions ending because a payment failed, not because the customer chose to leave. Causes, a worked example and how to cut it.

    In Zubs

    • Dunning

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