Yes, you have to measure some notable ones like LTV, CAC, Churn rate, MRR, payback period, etc.
But, there are plenty of other metrics that a subscription business can track, depending on the model and priorities of that business.
Here are a few additional metrics that may be relevant to certain types of subscription businesses:
✦ Activation rate: The percentage of subscribers who successfully complete the onboarding process and become active subscribers.
✦ Upsell and cross-sell rate: The percentage of subscribers who upgrade to a higher-priced subscription tier or purchase additional products or services from the business.
✦ Referral rate: The percentage of subscribers who refer new customers to the subscription service.
✦Cohort analysis: Method of analyzing data based on groups of customers who share similar characteristics or behaviours.
✦ Engagement rate: Measures the level of activity or interaction that subscribers have with the service, such as the frequency of logins, clicks, or other actions. It can be an important metric for businesses that want to ensure that subscribers are getting value.
✦ Cost per conversion: This metric measures the cost of converting a lead into a paying customer.