This week on the Monetization Matrix, I discuss one of my favorite topics - metrics!!

What are the most important metrics to track for your subscription business and how should you be tracking or thinking about your payment metrics?

These two areas are important meaty topics and are intertwined in their importance (depending on whether you have a subscription , recurring revenue business or not).

Subscription Metrics

1. Subscribers - How many users are paying for your service/product?
2. Churn Rate - How many people are leaving?
3. Retention/Survivability - How long are your customers sticking around ? When are they quitting or leaving?
4. First Pass Success- this is a payment metric, but you need to know how many customers you are able to bill successfully on first attempt - this will be an indicator for how many customers you need to recover
5. Recovery Success - Out of all the customers who you initially can't charge - how many are you able to take out of suspension and turn back into paying users?
   
   
6. Recovery Timing - When do you save customers from being cancelled?

Payment Metrics

1. Payment Success Rate - Of all invoices / payment attempts - how successful are you
2. Authorization Rate- When someone gives you a card, how often is it valid?
3. Auth-Capture - How often can you get money from a customer?
4. Average Order Value - How large is the basket?
5. Refund Rate - Are customers asking for their money back?
6. Chargeback Rate - Are you facing fraud or are there better business practices you should be employing?
7. Customer Lifetime Value - When you combine retention with AOV, you get a view for how much a customer is worth long term.

You’ve reached the Monetization Matrix with me, your host, Kristian Hansen. Your expert with insights into payments and subscription strategies - where I discuss how to help you monetize your products and services for growth.

Payments For Payments