The most successful brands don’t just collect data; they use it to make smarter decisions. Analytics aren’t worth much if you don’t leverage them to drive strategy and growth in your business.
But subscription brands have access to more data than ever, and honestly, it can be a little overwhelming. If you’re looking to cut through the noise, here are the three metrics you need to focus on.
1. Customer lifetime value (LTV): Are you earning long-term loyalty?
Growth isn’t just about gaining new customers—it’s about keeping them. When thinking about subscriptions, LTV is crucial to uncovering opportunities in your customer lifecycle, like drop-off after the 3rd order. Boosting LTV means focusing on retention strategies like personalized rewards, flexible subscription options, and loyalty incentives.
2. Average order value (AOV): Are you maximizing every purchase?
A higher AOV means more revenue per transaction, but increasing it isn’t always straightforward. Your product prices will likely stay consistent over time, so this is your chance to get creative. Utilize strategic bundling and personalized upsells while optimizing every touchpoint from landing page to checkout.
3. Churn rate: Are you keeping the subscribers you worked hard to win?
Losing customers is inevitable, but smart brands use data—and tools—to minimize churn. Are customers leaving after a specific number of orders? Is passive churn from failed payments a bigger issue than active churn from voluntary cancellations? Identifying patterns in cancellation data helps you take proactive steps to keep subscribers engaged.
