700-805 · Question #23
Which three financial metrics are critical in renewing subscriptions? (Choose three.)
The correct answer is B. annual re curing revenue D. training costs E. renewal rate. Renewing subscriptions hinges on tracking Annual Recurring Revenue (B) because it measures the predictable revenue stream at stake if customers churn. Renewal Rate (E) directly quantifies how successfully the business retains customers, making it the most targeted indicator of…
Question
Which three financial metrics are critical in renewing subscriptions? (Choose three.)
Options
- Anet new sales
- Bannual re curing revenue
- Cclose rate
- Dtraining costs
- Erenewal rate
How the community answered
(29 responses)- A17% (5)
- B76% (22)
- C7% (2)
Explanation
Renewing subscriptions hinges on tracking Annual Recurring Revenue (B) because it measures the predictable revenue stream at stake if customers churn. Renewal Rate (E) directly quantifies how successfully the business retains customers, making it the most targeted indicator of subscription health. Training Costs (D) are critical because inadequate customer training correlates with low product adoption, which is a leading driver of non-renewal - so monitoring this cost helps identify at-risk accounts before renewal time.
Net New Sales (A) measures acquisition, not retention - it reflects growth from new customers rather than the renewal pipeline. Close Rate (C) applies to new sales cycles and is not specific to the renewal motion, where the deal is already won and the focus shifts to value delivery.
Memory tip: Think "ARR + Train + Renew = Keep" - Annual Recurring Revenue tells you what's at risk, Training Costs reveal why customers might leave, and Renewal Rate confirms whether you kept them.
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