Read Recurly’s Latest Report on Key Metrics for Subscription Businesses

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Recurly is pleased to announce the release of our latest industry report—our Subscription Snapshot—in which we examine a sample set of 25 million subscription transactions to identify the key metrics that a subscription business should monitor and optimize in order to maximize revenue and maintain healthy growth.

The metrics we have identified in our analysis provide guidance for product, promotions, and operations to help subscription businesses better understand how to maximize customer loyalty. Understanding and managing these metrics, especially churn, will help businesses form closer relationships with their customers and deliver predictable revenue. Customer retention rates ultimately determine whether a recurring revenue business is growing profitably or not.

The report analyzes three key metrics for subscription businesses:

  • Churn, or customer attrition, reflects how well products and services satisfy customers over a period of time, although voluntary vs. involuntary churn is a key distinction that must be made.
  • Credit card declines is the second key metric. Proactive management for this metric results in increased revenue, higher rates of customer retention, and greater customer lifetime value.
  • Recovered revenue is the amount of revenue that Recurly is able to ‘recover’ for our customers that would otherwise have been lost to failed transaction. For many businesses, this amount can be significant.

In addition to the insights these metrics provide, they can also be used as a benchmark to see where your business falls in comparison to others in your category.

 

Download the Subscription Snapshot

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