14 Key Metrics For Subscription Growth to Monitor & Track In 2022

Running a subscription business is all about retaining your customers. And, customer retention is more about learning customer preferences and requirements. You need to understand your customers well, what they want and how you can give it to them. In addition, you need to track various metrics to ensure your business is running smoothly.

There are many different subscription business models out there, so it is important to choose the right one for your company. The monthly recurring revenue (MRR) model is the most popular subscription business model. This subscription business has a set monthly price for its services or products.

Another common subscription business model is the per-use model. This type of subscription charges customers based on their service or product usage. For example, if you have a website that allows users to download files, you may charge them per download.

Subscription Business Model Metrics To Keep An Eye On

These are several important subscription metrics to consider. To grow your subscription business, ensure you track these metrics to make informed decisions about your marketing, product development, and customer support.

• Churn Rate
• MRR
• ARR
• ARPU
• Customer LTV
• CAC
• LTV: CAC ratio
• Retention rate
• Trial conversion rate
• Freemium conversion rate
• Customer segmentation
• Acquisition insights
• Retention efforts
• Engagement figures
• NPS score
• Customer support metrics

Let us discuss each metric for your knowledge and convenience.

Churn Rate

Churn rate is one of the most important metrics for subscription businesses. It measures how many customers cancel their subscription or does not renew it. A high churn rate indicates problems with the product or service. It can also be an indicator of poor customer service.

MRR

Monthly recurring revenue (MRR) measures the amount of money a customer pays every month for a subscription. It is among the key subscription business metrics because it indicates the revenue the business can expect to receive every month.

ARR

Annual recurring revenue (ARR) is a measure of the amount of money that a customer pays every year for a subscription. It is a key metric for subscription businesses because it indicates the revenue the business can expect to receive every year.

Average Revenue Per User (ARPU)

The average revenue per user (ARPU) measures how much revenue you generate from each customer. This metric is important because it helps you understand how much each customer is worth to your business.

Customer Lifetime Value

Customer lifetime value (CLV) is the amount of money a customer expects to spend on your product or service throughout their life. It is important to track CLV because it can help you make marketing and product development decisions.

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Read Also: Relationship Between Customer Retention And CLV

Customer Acquisition Costs (CAC)

Customer acquisition costs (CAC) are the money you spend to acquire new customers. This metric is important because it helps you understand how much it costs to grow your customer base.

LTV: CAC Ratio

The LTV: CAC ratio measures how much revenue you generate from each customer compared to how much it costs to acquire them. A high LTV: CAC ratio indicates that your business is efficient at acquiring and retaining customers.

Retention Rate

Retention rate is the percentage of customers who continue to use your product or service after a given period. This metric is important because it helps you understand how well your product or service meets your customers’ needs.

Trial Conversion Rate

The trial conversion rate is the percentage of people who sign up for a free trial of your product or service who become paying customers. This metric is important because it helps you understand how effectively your free trial converts people into paying customers.

Freemium Conversion Rate

Freemium conversion rate is the percentage of people who use your free product or service who upgrade to a paid subscription. This metric is important because it helps you understand how effectively your freemium pricing model converts people into paying customers.

Customer Segmentation

Customer segmentation is the process of dividing your customer base into groups based on shared characteristics. This metric is important because it helps you understand your customers and what they need from your product or service.

Acquisition Insights

Acquisition insights are the process of understanding how new customers find out about your product or service. This metric is important because it helps you understand the marketing channels most effectively to acquire new customers.

Engagement Rate

Engagement rate measure how often people use your product or service. This metric is important because it helps you understand how well your product or service meets your customers’ needs.

NPS Score

NPS score is a measure of customer satisfaction. It is calculated by asking customers to rate their experience on a scale of 0-10 and then subtracting the percentage of customers who rate their experience as 0-6. This metric is important because it helps you understand how well your product or service meets your customers’ needs.

Why Choose Subscriptionflow For Your Business In 2022?

With SubscriptionFlow, you can track all your subscription customers in one place. You can see the most popular plans, identify churn early, and track customer lifetime value (LTV). Plus, our built-in growth tools help you acquire and retain more subscribers.

In short, SubscriptionFlow is the best way to run your subscription business in 2022. Here’s why:

1) We offer the most comprehensive set of subscription management features.

2) Our solutions are tailored to boost your business.

3) Our interface is designed for ease of use and scalability.

4) We have the most competitive pricing in the market.

5) We provide the best customer support in the industry.

6) We allow you to track the multiple metrics discussed above.

Schedule a demo with us today to learn more about our features and pricing.