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The 6 Metrics Every Subscription Business Needs to Track

by Presenter at KISSmetrics.com on Nov 02, 2012

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• 3. We’ll cover...1 The metrics we like to track...2 The metrics we NEED to track3 Q&A ...

• 3. We’ll cover...1 The metrics we like to track...2 The metrics we NEED to track3 Q&A
• 4. WHY DO METRICSMatter?
• 5. They tell us if we’re succeeding
• 6. Great metrics help us work on the right projects
• 7. THE METRICS WE LIKEToo Much
• 8. Total users
• 9. Pageviews and visitors
• 10. Vanity metrics are a distraction
• 11. We need metrics that track our business
• 12. Metric #1 MONTHLY RECURRING Revenue
• 13. What is monthly recurring revenue (MRR)?
• 14. SaaS depends heavily on recurring revenue All your costs are up front. And it takes a long time to turn a profit on a customer.
• 15. MRR best practices
• 16. Metric #2 USER AND REVENUE Churn
• 17. Churn is the percentage of people that bail
• 18. High churn = pain, low churn = win
• 19. Churn starts low but grows quickly If customer growth is constant, churn will eventually match it. You’ll stop growing.
• 20. 100 new customers per month at 10% churn 800 600 Customers 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
• 21. High churn = improve your product
• 22. Once you have control of churn... To keep growing, you’ll need to acquire customers faster every month.
• 23. Churn best practices
• 24. Metric #3 AVERAGE REVENUE PER Customer
• 25. Average revenue per customer
• 26. Up-sells and cross-sells are the key
• 27. Up-selling = get them on a higher plan
• 28. Cross-selling = sell more stuff
• 29. Average revenue best practices
• 30. Metric #4 LIFETIME Value
• 31. There are many different ways to calculate LTV LTV combines current revenue with churn to predict how much you’ll earn in the future.
• 32. Different from average revenue per customer?
• 33. LTV best practices
• 34. Metric #5 COST PER Acquisition
• 35. What’s the cost to acquire a new customer?
• 36. The importance of CPA
• 37. Get CPA for each marketing campaign
• 38. CPA best practices
• 39. Metric #6 THE SIGNUP Funnel
• 40. Track each step to becoming a customer
• 41. Don’t forget to track activation Activation = Someone uses a core part of your product for the first time
• 42. Funnel best practices
• 43. CAN WE TRACK THESE IN Analytics?
• 44. Google Analytics can’t track any of this.
• 45. You need to connect revenue to customers.
• 46. A customer analytics revenue report
• 47. We can also segment by traffic source
• 48. Where do we get customer analytics?
• 49. Two metrics you’ll need to pull by hand (for now)
• 50. KISSmetrics will track these metrics for you

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The 6 Metrics Every Subscription Business Needs to Track The 6 Metrics Every Subscription Business Needs to Track Presentation Transcript