What is Subscription Analytics?

What is Subscription Analytics?

Subscription analytics is the practice of measuring, tracking, and interpreting the data generated by a subscription business to understand its health, identify problems, and make better commercial decisions.

The metrics that matter most

• MRR (Monthly Recurring Revenue) — the total predictable monthly revenue from active subscriptions
• Churn rate — the percentage of subscribers lost in a given period, split between voluntary and involuntary churn
• CLV (Customer Lifetime Value) — total expected revenue from the average subscriber over their lifetime
• ARPU (Average Revenue Per User) — revenue per active subscriber per billing cycle
• Cohort analysis — tracking how groups of subscribers acquired at the same time behave over their lifecycle
• Net Revenue Retention — whether revenue from the existing subscriber base is growing or shrinking

Analytics specific to physical product subscriptions

For businesses running Product-as-a-Service or device subscriptions, analytics also covers the asset dimension: average number of subscription cycles per device, refurbishment cost per cycle, residual asset value, and fleet utilisation rate.

Read: KPIs to Track in a Rental Business | What is a Recurring Revenue Model?