Make or break subscription metrics

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arzina544
Posts: 31
Joined: Sun Dec 15, 2024 4:38 am

Make or break subscription metrics

Post by arzina544 »

A nice side effect of the subscription revenue model is that in many cases you have more than enough data to measure. However, there is also a downside to a lot of data: not being able to see the forest for the trees, which means you are unable to gain meaningful knowledge. It is therefore advisable to focus on the most essential make or break metrics when measuring the results of your subscriptions . I have listed the top 8 metrics below.

1. Monthly recurring revenue (MRR)
2. Customer acquisition rate (CAR)
3. Volume churn
4. Value Churn
5. Net promoter score (NPS)
6.Customer lifetime value (LTV)
7. Customer acquisition cost (CAC)
8. Efficiency (LTV / CAC)
1. Monthly recurring revenue (MRR)
Everything starts (and ends) with the subscription israel telegram data provider’s ability to generate recurring subscription revenue. The concept of monthly recurring revenue (MRR) therefore deserves a first place in the list of 8 metrics.

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MRR expresses how much turnover is generated on a monthly basis by the subscriptions. There are several ways to calculate MRR. The simplest is:

MRR = monthly average revenue per user (ARPU) x total number of monthly subscribers

The ARPU primarily consists of the subscription fee that the customer pays you. It is important to disregard one-off income, such as connection costs. After all, this type of income is not recurring.

It may be useful to further refine your MRR reporting by specifically looking at the MRR of new incoming customers. Is it higher or lower than that of existing customers? You can also visualize how MRR is positively influenced by customers switching to more expensive subscriptions ( expansion MRR ) or negatively affected by customer loss ( churn MRR ). We will discuss this last point in more detail later.
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