Recurly Analytics for Competitive Advantage
It has been said that you can have data without information, but you cannot have information without data. For subscription businesses, even if they have data, they often do not have ready access to the kind of data that allows them to optimize their business. But with meaningful data, marketing teams and others can formulate strategies that will give their business a competitive advantage in what are often crowded markets.
Recurly is pleased to launch Recurly Analytics which provides relevant, actionable data so that our customers can continually monitor the health of their subscription business. As the saying goes, “you can’t manage what you don’t measure,” and our Analytics gives our customers the information they need to continually refine their subscription business to make sure it’s performing optimally.
Recurly customers can drill down to discover trends and triggers, causes and effects. In addition to subscriber and billing data, they can see which plans are performing best, monitor retention and churn rates over time, and review other key performance indicators critical to running a successful subscription business. These insights support intelligent decision-making—based on facts and data, not theories and hunches.
For example, a marketing team in charge of a subscription-based business may have monthly recurring revenue numbers that show the business is growing. This is good data, but it’s not enough. They need more detailed information to see what’s truly happening ‘behind the scenes’—for example…
- How much of this growth is from new subscribers vs. upgrades?
- And while overall growth is strong, how much is this growth is coming from new sign-ups vs. a reduction in churn?
- How is the growth impacted by subscribers downgrading to a lower priced plan?
This marketing team also tracks their monthly churn rate, which is relatively stable at 3%. This is a low churn rate, but the number doesn’t tell them very much. To effectively address churn and improve this rate even more, they should have information on how many people are voluntarily cancelling their subscriptions vs. having their subscription cancelled due to problems with their payment method. This is because different causes for churn—voluntary vs. involuntary—need to be addressed in different ways. Taking steps to improve customer satisfaction won’t affect churn if it’s caused by failed payments—but optimizing dunning processes might. Recurly Analytics provides detailed information on churn so that our customers can quickly identify the top reasons for subscription expirations and address them.
This marketing team also has data on which of their subscription plans is their best performing. But, other than total subscribers and revenue, do they know how their top plan performs against other plans on more detailed criteria? For example:
- How does the customer lifetime value (LTV) for their different plans compare?
- What are their free trial conversion rates?
- What kind of movement is there into and out of different plans?
These are the kinds of actionable insights that Recurly Analytics provides—giving marketers and others the information they need to make key strategic and tactical decisions that will support the health and growth of their business.
Imagine the competitive advantage you could build with actionable insights like these. To learn more about Recurly Analytics, download our data sheet and read our previous blog post. Or talk to a Recurly expert at (844) 732-8759.