This music streaming company relies on subscriptions for revenue. Analyzing customer engagement and retention over time is a key aspect of projecting growth and evaluating the success of implemented features and updates.
Evaluate the effectiveness of the new Collaborative Playlist feature by evaluating customer engagement from launch through two years. This will inform business decisions for the marketing team.
- Did the Collaborative Playlist feature (approximated by early upgrade) increase retention?
- Which user segment has the highest churn risk, and what recommendations can be made to increase engagement for those users?
- What is the current MRR growth trend? Is it accelerating or slowing?
- SQL
- Tableau
The dataset contains information about user sign-up dates, payment dates, plans, and the acquisition channel per user sign-up. It also includes the status of the customer's subscription and which plan they are using. The key attributes include:
- signup_date
- acquisition_channel: users have been acquired through social media, partnership, paid ads, referral, or organic
- platform: Android, iOS, or web users
- status in the users table: Refers to the user's current status as churned or active
- payment_date
- amount_paid_usd: Amount paid each time in US dollars
- plan_name and monthly_price_usd: There are three plan options and different price points per month in US dollars - Free ($0), Starter ($20), Growth ($50), or Enterprise ($100)
- status in the subscriptions table: Refers to the user's current status as active or cancelled. While a user's subscription status may be active for a particular subscription date, the user's status can either be "churned" or "active"
- subscription_date: Refers to the date that the user began or changed their subscription
- monthly_revenue_usd: Monthly revenue in USD
After analyzing the data, we observed the following trends:
- Monthly Recurring Revenue went up for all paid plans after implementing the Collaborative Playlist feature.
- The number of active subscribers went down after implementing the Collaborative Playlist feature
- The Growth plan ($50) generated the most recurring revenue in the end, but the Starter plan ($20) grew most steadily, dipping only for a short time in the summer of 2024. The Enterprise plan ($100) saw overall growth but was less predictable, with several dips.
- 67% of users are on the Free or Starter plan, with the remaining on the Growth or Enterprise Plan.
- Paid ads generate the least amount of acquisitions (16%), and Social Media generates the most (24%).
While only correlation exists between monthly recurring revenue and the introduction of the Collaborative Playlist feature, the following recommendations are based on those insights:
- Target Free and Starter subscribers to step up into the next plan: Providing incentives for this audience to step into the higher plan could keep steadier revenue and active subscribers. People in Starter and Growth plans are fairly consistent, where Enterprise customers do not contribute as steadily.
- Continue the Collaborative Playlist Feature and continue to encourage customers to use the product socially
- Focus on Social Media to gain new subscribers, perhaps moving paid advertisements to those platforms