Running a successful subscription business requires one crucial skill: understanding your subscribers’ data. It's about understanding what is working and what is not. This is important to optimizing your offerings and growing your brand. Understanding these analytics isn’t about numbers, it’s about gaining meaningful insights and identifying areas of improvement.
Data can be intimidating, we get it. But don’t worry! This guide will help you understand subscription analytics and break it down into actionable steps. We will focus on
Let’s start with the basics first.
Subscription Analytics is the process of collecting, analyzing and reviewing subscription data. Subscription analytics helps DTC brands understand various aspects such as customer behaviour, churn, retention rates etc.
Building a thriving subscription business goes beyond just creating products. It’s about understanding your buyers and working on strategies that keep them hooked. That’s when subscription analytics come into play, that's your secret to making strategic decisions and adjustments to skyrocket your growth.
Here’s why subscription analytics is essential for your business:
By analyzing your subscription data, you can improve retention rates, attract new customers, and optimize your pricing structure, leading to sustainable growth.
Subscription analytics dashboard gives you a real-time update on sales performance, allowing you to track the revenue and other key metrics.
With subscription analytics, it’s easier to track customer behavior like where they are coming from, how much time they spend on the website, and what products they are viewing and purchasing. This data is perfect for optimizing the user experience and making product offerings better.
You can identify the issues by monitoring your churn rate and create retention strategies accordingly. These analytics help you understand the reasons for customer cancellations, providing valuable insights to optimize your business and reduce churn.
By monitoring your monthly recurring revenue and customer lifetime value, you can accurately forecast sales. This helps you plan and make decisions strategically about marketing, future product developments, inventory and shipping.
Let’s explore how you can maximize the utilization of the Loop Subscriptions analytics dashboard to gain insights into your subscription data.
To truly thrive in the DTC business, data is your secret weapon. You can turn one-time customers into loyal subscribers by tracking customer behaviour and key metrics. Here’s what you need to track to optimize your subscription offerings.
The subscription analytics paints you a detailed picture of your subscription model but translating insights into action is something that makes your business grow. Here’s what you can do after your analysis.
Based on your analysis, create some A/B tests and implement the winning variations across your subscription offering. For example, If you discovered that a particular retention email boosted open rates, adopt them for future campaigns.
As you gather data, analyze how your subscriber's behavior changes with each segment this will help you identify new sub-segments, allowing for even more targeted communication and promotions.
You can use your segmentation to personalize subscribers' experience. For example, send targeted email campaigns with content relevant to specific segments. Send success stories from paying subscribers to free trial customers to incentivise conversion.
Understand how great subscriber experience increases subscription revenue for DTC brands here.
Subscription Analytics pinpoint areas of improvement throughout your subscription model. For example, if data reveals low sales for a specific product, consider A/B testing its removal or replacement with a more popular product. This ensures your offering remains relevant and valuable to your subscribers.
By following these steps, you can transform your subscription from an exercise to a growth engine. You will constantly optimize your offering, update your acquisition strategies, and ultimately build a thriving subscription business that caters to the unique needs of your customers.
The Loop Subscriptions dashboard provides a comprehensive view of your store's subscription performance and can help you make informed decisions.
This dashboard helps you track the recurring revenue for the selected time interval, forecast future sales and make improvement to your subscription plan accordingly. Differentiate between all and subscription revenue, using graphs to understand customer lifetime value.
Utilize revenue forecast and total orders to anticipate upcoming payments on dunning status. Predict future revenue by analyzing previous dunning statistics to estimate the approximate successful collections from upcoming invoices.
Subscription overview dashboard gives you a starting point for measuring subscription growth. This helps you understand the effectiveness of your marketing efforts and identify areas of improvement.
Analyze the subscription overview dashboard to understand your new, active, paused, cancelled and expired subscriptions for the last 6 months. Track these changes over time to understand overall subscription model health and predict future performance.
Analyze your subscription numbers that have been activated, deactivated, and changed within a time interval. Monitoring activated subscriptions will help you understand marketing campaign effectiveness and identify channels driving more signups.
Reduce churn to analyze subscription deactivation to pinpoint reasons for churn and create targeted retention campaigns.
Identify top-performing products by analyzing product subscription revenue and understand which products are driving the most subscriptions and revenue. Develop marketing strategies accordingly by focusing on products with lower acquisition costs.
Analyze churn reports to understand customers' pain points and create targeted solutions to improve retention.
Use subscriber cohort analysis to recognize cohorts with high churn and improve retention by updating the onboarding strategies.
Cancellation analytics provide you with a wealth of insights to help you understand why customers are cancelling their subscriptions and develop strategies to retain them.
You can identify churn risk to analyze which subscriptions are at risk of cancellation and create win-back campaigns.
The Cancellation order-wise section helps you understand how many recurring orders a customer completed before cancelling the subscription.
Analyse which order number or range has the most cancellation, this will indicate a specific point in the customer journey the churn is most likely to happen. You can then develop targeted retention campaigns based on these order numbers or ranges.
Identify upcoming payments with a high chance of failure by monitoring "High-risk payments," "Payments with last retry left," and "Payments with cards expiring". Reach out proactively to offer alternative payments and update payment information. You can also monitor the "Failed vs Realized revenue trend" to assess how effective your dunning strategy is in recovering the failed payments.
Identify expiring cards or other potential payment method issues by analyzing the "Payment method status". You can also prioritize the outreach campaign for customers with at-risk upcoming payments.
Leveraging subscription analytics helps DTC brands unlock their business’s full potential. By transforming data into actionable insights, subscription businesses can understand their audience better along with the product performances. Loop Subscriptions Analytics dashboard provides you with a deeper understanding of your subscription ecosystem. By leveraging these insights, you can plan your marketing campaigns, optimize subscription plans, maximize customer value and simultaneously minimize churn.
Book a demo today to see how Loop Subscriptions can transform your business.
Emma Johnson is celebrated for her strategic brilliance and innovative flair. By seamlessly blending creativity with data-driven insights, she has propelled Loop’s brand to new heights, establishing it as a formidable force in the Shopify Subscriptions space.
