{"id":3011,"date":"2025-07-24T16:38:51","date_gmt":"2025-07-24T16:38:51","guid":{"rendered":"https:\/\/fanso.io\/blog\/?p=3011"},"modified":"2025-07-24T16:39:29","modified_gmt":"2025-07-24T16:39:29","slug":"best-kpis-to-track-for-a-subscription-based-platform","status":"publish","type":"post","link":"https:\/\/fanso.io\/blog\/best-kpis-to-track-for-a-subscription-based-platform\/","title":{"rendered":"Best KPIs to Track for a Subscription-Based Platform"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Today, &#8220;the customer is king.&#8221; Hence, adopting a customer-centric approach is a survival instinct for businesses today. The inherent drive to stay competent motivates them to periodically track their success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Subscription metrics are powerful tools in their success journey. These insightful metrics provide valuable insights on acquisition, retention, and revenue. Thus, you can continually gauge your business health and focus on long-term subscription growth.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">But, which metrics should you track?<\/span><\/i><span style=\"font-weight: 400;\"> We&#8217;ll cover all the essential metrics for your <\/span><a href=\"https:\/\/fanso.io\/blog\/how-to-start-a-subscription-based-website\/\"><span style=\"font-weight: 400;\">subscription business<\/span><\/a><span style=\"font-weight: 400;\">, what they indicate, and how to improve them.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">So, let&#8217;s dive in!<\/span><\/i><\/p>\n<div id=\"toc_container\" class=\"toc_white no_bullets\"><p class=\"toc_title\">Table of Contents<\/p><ul class=\"toc_list\"><li><a href=\"#Why_is_it_Important_to_Track_KPIs_for_Your_Subscription-Based_Platform\"><span class=\"toc_number toc_depth_1\">1<\/span> Why is it Important to Track KPIs for Your Subscription-Based Platform?<\/a><\/li><li><a href=\"#7_Best_KPIs_to_Track_for_Subscription-Based_Platform\"><span class=\"toc_number toc_depth_1\">2<\/span> 7 Best KPIs to Track for Subscription-Based Platform<\/a><\/li><li><a href=\"#Conclusion\"><span class=\"toc_number toc_depth_1\">3<\/span> Conclusion<\/a><\/li><li><a href=\"#FAQ-Related_to_Best_KPIs_to_Track_for_a_Subscription-Based_Platform\"><span class=\"toc_number toc_depth_1\">4<\/span> FAQ-Related to Best KPIs to Track for a Subscription-Based Platform<\/a><\/li><\/ul><\/div>\n<h2><span id=\"Why_is_it_Important_to_Track_KPIs_for_Your_Subscription-Based_Platform\"><span style=\"color: #333399;\"><strong>Why is it Important to Track KPIs for Your Subscription-Based Platform?<\/strong><\/span><\/span><\/h2>\n<p><b>Like every business, subscription businesses have key performance indicators(KPIs) to track. These key metrics are commonly referred to as subscription metrics.\u00a0<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">So, why is it essential to track KPIs?<\/span><\/i><span style=\"font-weight: 400;\"> Primarily, because these metrics indicate the health of your subscription business. There are several metrics you can track for your subscription. Hence, your quest begins with finding the ones that matter the most!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you track all the metrics, it is equivalent to getting lost in numbers. Instead, find the ones that align with your business goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Summing up, <\/span><b>why you can&#8217;t miss tracking this data:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><strong><span style=\"color: #333399;\">Track Business Performance<\/span><\/strong><\/h3>\n<\/li>\n<\/ul>\n<p><b>By keeping an eye on this data, you know where your business stands<\/b><span style=\"font-weight: 400;\">.<\/span><i><span style=\"font-weight: 400;\"> For example, when your monthly revenue is higher, you know that it&#8217;s tough to retain your business for the long run!\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">You can set your goals and make appropriate tweaks to improve your business.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"color: #333399;\"><strong>Insights on Customer Behaviour<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">Do customers love your subscription business? Look at the subscription trend. <\/span><\/i><span style=\"font-weight: 400;\">Analyze whether your monthly revenue is moving upwards or users are dropping off.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus,<\/span><b> customer patterns = actionable insights.<\/b><span style=\"font-weight: 400;\"> Then, you can go forth and refine your offering, utilize upselling opportunities, or reduce marketing spend.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><strong><span style=\"color: #333399;\">Better Pricing Strategies<\/span><\/strong><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your monthly revenue is a direct indicator of whether your current subscription model and prices are hitting the nail on the head. This way, you can<\/span><b> experiment with <\/b><a href=\"https:\/\/fanso.io\/blog\/membership-pricing\/\"><b>different membership price points<\/b><\/a><b> and models to see which gives maximum ROI.<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><strong><span style=\"color: #333399;\">Improve Marketing and Sales Strategies.<\/span><\/strong><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There&#8217;s no golden rule for selling subscription services. It&#8217;s a series of trials and errors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Figure out which <\/span><b>segments of the audience and marketing strategy yield results.<\/b><span style=\"font-weight: 400;\"> The right subscription metrics help to refine your buyer persona. Thus, target the customers with the maximum potential.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><strong><span style=\"color: #333399;\">Gauge Financial Health<\/span><\/strong><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you are planning for a successful subscription, obviously, track the finances. From monthly recurring revenue to churn and customer lifetime value, these metrics capture how well your business fares.<\/span><\/p>\n<h2><span id=\"7_Best_KPIs_to_Track_for_Subscription-Based_Platform\"><strong><span style=\"color: #333399;\">7 Best KPIs to Track for Subscription-Based Platform<\/span><\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below are the crucial metrics you shouldn&#8217;t ignore for a smooth subscription business:<\/span><\/p>\n<figure id=\"attachment_3013\" aria-describedby=\"caption-attachment-3013\" style=\"width: 459px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\" wp-image-3013\" src=\"https:\/\/fanso.io\/blog\/wp-content\/uploads\/2025\/07\/KPIs-to-Track-for-a-Subscription-Based-Platform.png\" alt=\"KPIs to Track for a Subscription-Based Platform\" width=\"469\" height=\"425\" \/><figcaption id=\"caption-attachment-3013\" class=\"wp-caption-text\">KPIs to Track for a Subscription-Based Platform<\/figcaption><\/figure>\n<h3><strong><span style=\"color: #333399;\">1. Monthly Recurring Revenue\u00a0<\/span><\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The first and probably the<\/span><b> most important is monthly recurring revenue(MRR).<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your<\/span><b> overall monthly revenue from all the subscriptions<\/b><span style=\"font-weight: 400;\">. For instance, you run a food subscription box. Look at your monthly subscription revenue to gauge its stability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, it also showcases your revenue flow to accommodate expenses and measure long-term growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Along with MRR, look at a few other monthly numbers that matter. This could be new users, churn, upsells, or downsells.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, you calculate the revenue for each of the categories. This offers a more nuanced understanding. For instance, which segment is winning you maximum business, and which isn&#8217;t paying enough?<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Formula:\u00a0<\/span><\/h4>\n<p><b>MRR = Number of customers x Average Subscription Fee<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">If you have an annual revenue analysis,<\/span><\/i><\/p>\n<p><b>MRR =\u00a0 Annual Recurring Revenue\/ 12<\/b><\/p>\n<h4><span style=\"font-weight: 400;\">How Does it Help?<\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forecast your business revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the churn risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Powerful performance indicator<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indicates product-market fit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Better budgeting and planning<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #333399;\"><strong>Solution:<\/strong><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Optimize your pricing and billing model<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Implement a tiered pricing model<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Introduce free trials and discounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Persuade your free users to a higher plan by upselling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Switch to the annual billing option<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #333399;\"><strong>2. Churn Rate<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As businesses are moving from customer acquisition to retention, author Stephen Covey&#8217;s words ring true more .\u00a0 <\/span><i><span style=\"font-weight: 400;\">&#8220;The key is not in gauging the spending time, but how well\u00a0 invested it is.&#8221;\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">That&#8217;s why businesses, such as Saas, subscription boxes, and streaming platforms, are prioritizing retention. And churn rate is the best metric for tracking retention.<\/span><\/p>\n<p><b>Churn is the rate at which people cancel your subscription within a specific period. This shows the value customers derive from your business.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your subscription businesses are apt for customers, they are likely to stick with them. Thus, your churn rate is low. <\/span><i><span style=\"font-weight: 400;\">What does this mean? <\/span><\/i><span style=\"font-weight: 400;\">Customers love your product and find it quite engaging.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, a higher churn indicates major product improvements or onboarding issues. <\/span><b><i>When do you say the churn is too high? Anything above 5% monthly or 20% annually is concerning.<\/i><\/b><\/p>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid focussing on the wrong audience<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loss of revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indicates customer satisfaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Underlying issues like poor customer experience, insufficient features, pricing challenges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business health and profitability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loopholes in the payment system<\/span><\/li>\n<\/ul>\n<h4><strong><span style=\"color: #333399;\">Solution:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve your customer service<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refine your product offerings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer a flexible pricing plan<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve the onboarding workflow and personalize communication<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loyalty programs include discounts, perks, exclusive content, etc.<\/span><\/li>\n<\/ul>\n<div class=\"protip\">\n<p class=\"mb-0\"><span style=\"color: #000000;\"><strong>Tip:<\/strong> Go beyond the customer numbers and look into the actual revenue churn. Delve deeper into the actual revenue lost from downgrades or cancellations.<br \/>\n<\/span><\/p>\n<\/div>\n<h3><strong><span style=\"color: #333399;\">3. Customer Acquisition Cost (CAC)<\/span><\/strong><\/h3>\n<p><i><span style=\"font-weight: 400;\">What&#8217;s a perfect marketing strategy like? <\/span><\/i><span style=\"font-weight: 400;\">It&#8217;s a delicate dance between an accurate marketing spend and actually winning customers. For that, you need to know the actual money required to acquire a customer. That&#8217;s what customer acquisition is all about!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ideally, <\/span><b>it is the total marketing and sales money to win and convert prospects into customers.<\/b><\/p>\n<h4><span style=\"color: #333399;\"><b>Formula:<\/b><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Customer Acquisition Cost(CAC)=<\/span><span style=\"font-weight: 400;\"> Total amount spent on customer acquisition<\/span><span style=\"font-weight: 400;\">Number of new customers acquired<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although not a direct subscription metric, it indicates whether your business model is viable. Typically, your customer acquisition cost should be less than customer lifetime value.\u00a0<\/span><\/p>\n<p><b>If your CAC is higher but the return is low, it indicates that acquiring customers is not profitable.<\/b><span style=\"font-weight: 400;\">\u00a0 That&#8217;s when you need to focus on retention.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You need to measure acquisition across different channels. For example, social media, email, Google Ads, SEO, etc.\u00a0<\/span><\/p>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shows whether acquiring a new customer is profitable<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shows overspending and underspending of resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the most and least profitable marketing channels\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indicates your business viability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analyzing effective resource allocation for channels<\/span><\/li>\n<\/ul>\n<h4><strong><span style=\"color: #333399;\">Solution:<\/span><\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">To lower the customer acquisition cost:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track everything from ad spend, website visits, leads, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the baseline to gauge your CAC<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create specific landing pages, so you need to track only CTAs specific to that page<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Spot the channels with highest ROI and spend a higher budget on them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refine your marketing message and test different CTAs<\/span><\/li>\n<\/ul>\n<h3><strong><span style=\"color: #333399;\">4. Customer Lifetime Value<\/span><\/strong><\/h3>\n<p><a href=\"https:\/\/fanso.io\/blog\/how-to-measure-ltv-lifetime-value-of-your-subscribers\/\"><b>Customer Lifetime Value (LTV)<\/b><\/a><b> is the average revenue expected from a single customer during their lifetime<\/b><span style=\"font-weight: 400;\">. Now, their relationship extends from signing up to the churn.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LTV is an essential metric, but is often neglected by businesses. <\/span><b>It indicates a few things: CAC, churn, and average return per user.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When customers find expected value from your subscriptions, they won\u2019t stay longer. And that means a higher LTV.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, let&#8217;s see how it&#8217;s calculated. There are a few ways to measure your Customer LTV.<\/span><\/p>\n<h4><strong><span style=\"color: #333399;\">Formula:<\/span><\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Subscriber Lifetime Value(LTV)=<\/span><span style=\"font-weight: 400;\">Average Revenue Per Subscriber x\u00a0 Gross Profit Margin<\/span><span style=\"font-weight: 400;\">Churn Rate<\/span><\/p>\n<p><b>OR<\/b><\/p>\n<p><b>Subscriber LTV =\u00a0 Average Transaction Size\u00a0 x\u00a0 Number of Transactions\u00a0 x\u00a0 Retention Period<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">However, here&#8217;s the kicker: Your LTV shouldn&#8217;t exceed the acquisition cost.\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">This answers the quintessential question: how much should I spend on acquiring and retaining customers?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">If the sales and onboarding costs are more than the lifetime value, you need to reduce the unnecessary spend. <\/span><b>Ideally, a LifetimeValue: CAC ratio of 3:1 is practical.<\/b><\/p>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?:<\/span><\/strong><\/h4>\n<p><i><span style=\"font-weight: 400;\">A low lifetime value indicates:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High churn<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing overspend<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low renewal rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A change in marketing strategy<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">A high lifetime value shows:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A valuable customer segment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A highly customer base<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customers are deriving value from a product or service<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased revenue and profitability from the business<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\">Solution:<\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve your customer experience<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personalize the onboarding experience, products, and services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create omnichannel presence<\/span><\/li>\n<\/ul>\n<h3><strong><span style=\"color: #333399;\">5. Annual Recurring Revenue<\/span><\/strong><\/h3>\n<p><i><span style=\"font-weight: 400;\">Is your subscription business measured annually?<\/span><\/i><span style=\"font-weight: 400;\"> Then, you need to switch from MRR to ARR.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MRR offers the revenue statistics for a single month. Likewise, ARR captures the picture for the entire year. Thus, you get the groove of your business annually.<\/span><\/p>\n<p><b>Here, you need to add up all the annual fees coming from every subscription throughout the year.<\/b><span style=\"font-weight: 400;\"> This gives a deeper understanding of the annual trends of your business. Thus, this is insightful for setting long-term goals for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Include MRR, account upgrades, downgrades, set-up fees, non-recurring add-ons, etc.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Formula:<\/span><\/h4>\n<p><b>ARR = Average Revenue Per User\u00a0 x Number of Users<\/b><\/p>\n<p><span style=\"font-weight: 400;\">OR<\/span><\/p>\n<p><b>ARR =\u00a0 Monthly Recurring Revenue x 12 \/\u00a0 Number of customers<\/b><\/p>\n<h4><span style=\"font-weight: 400;\">How Does it Help?:<\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forecasting revenue\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Long-term planning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A business&#8217;s financial health\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer satisfaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Upselling and cross-selling decisions<\/span><\/li>\n<\/ul>\n<h4><strong><span style=\"color: #333399;\">Solution:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve customer success<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce churn<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer annual plans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Broaden your market reach<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Discounts on annual plans<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #333399;\"><strong>6. Net Promoter Score (NPS)<\/strong><\/span><\/h3>\n<p><i><span style=\"font-weight: 400;\">Want to gauge the happiness quotient of your customers?<\/span><\/i> <b>Net Promoter Score (NPS) is a powerful way to gauge if your customers are satisfied enough.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In an age where word-of-mouth marketing still rings true. <\/span><b>Gauging your customers&#8217; tendency to recommend your subscription is crucial. <\/b><span style=\"font-weight: 400;\">Moreover, it gives insights into the willingness of customers to recommend your subscription service.<\/span><\/p>\n<p><b>A score of 0-30 is a good NPS score, while anything higher than that is considered great.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">While the customer satisfaction score provides a general sentiment of your brand, NPS offers a more nuanced insight into specific purchases and interactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can collect NPS with emails, websites, or even within the product pop-ups. For example, your customer&#8217;s free trial just ended. Send an NPS survey capturing their views on their user experience.<\/span><\/p>\n<p><b>Identify the key touchpoints and find when your customer is most engaged(first purchase, renewal, contract expiration)<\/b><span style=\"font-weight: 400;\">. Grab this opportunity to collect the NPS score!<\/span><\/p>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gauge the reason for customer loyalty and satisfaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify your promoters, detractors, and passives<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identifying the reason for churn<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify areas for product improvement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track performance and benchmark<\/span><\/li>\n<\/ul>\n<h4><strong>Solution:<\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collect customer feedback &amp; identify patterns to improve them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve customer service and resolve issues promptly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Close the feedback loop and convert detractors into promoters<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the root cause and fix the issue quickly<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #333399;\"><strong>7. Average Revenue Per User(ARPU)<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another key metric that looks into the customer value is Average Revenue Per User. It demonstrates <\/span><b>the average revenue from per subscriber. <\/b><span style=\"font-weight: 400;\">This is quite relevant for subscription businesses with an extensive customer base.\u00a0<\/span><\/p>\n<p><b>So, if your business doesn&#8217;t derive significant value from a customer, you shouldn&#8217;t limit your spending.<\/b><\/p>\n<h4><strong><span style=\"color: #333399;\">Formula:<\/span><\/strong><\/h4>\n<p><b>Average Revenue Per User = Total Users \/ Total Number of Customers\u00a0<\/b><\/p>\n<p><b>For example, if the monthly revenue of your food subscription box is $10,000 from 100 subscribers.\u00a0<\/b><\/p>\n<p><b>Then, ARPU = 10000\/100 = $100<\/b><\/p>\n<p><b>i.e. $100 revenue per user<\/b><\/p>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shows your valuable customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps strategic customer targeting<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shows upselling and cross-selling opportunities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase or minimize your marketing spend<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insights on audience and pricing strategy<\/span><\/li>\n<\/ul>\n<h4><span style=\"color: #333399;\"><strong>Solution:<\/strong><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Balance the user acquisition and retention<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check the pricing viability\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encourage upsells and cross-sells<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Breakdown ARPU by different segments for more targeted insights<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #333399;\"><strong>8. Trial Conversion Rate<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The charm of free trials can&#8217;t be ignored if you are in the subscription business. <\/span><b>First, the free trials attract customers. <\/b><span style=\"font-weight: 400;\">Once they find their <\/span><i><span style=\"font-weight: 400;\">&#8220;Aha moment&#8221;, <\/span><\/i><span style=\"font-weight: 400;\">they are likely to convert into an actual customer.<\/span><\/p>\n<p><b>The percentage of free users that convert into paid subscribers after using the free trial.<\/b><\/p>\n<h4><span style=\"font-weight: 400;\">Formula:<\/span><\/h4>\n<p><b>Trial Conversion Rate=<\/b><span style=\"font-weight: 400;\"> Number of Paid Users Converted from Free Trial<\/span><span style=\"font-weight: 400;\">Total Number of Trial Users<\/span><span style=\"font-weight: 400;\"> x 100<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This metric is relevant, if you run a freemium business model.\u00a0<\/span><\/p>\n<p><b>Businesses implement the freemium model in two forms:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><strong><span style=\"color: #333399;\">Premium Free Trial:<\/span><\/strong><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Users can avail of the <\/span><b>free trial for a fixed period,<\/b><span style=\"font-weight: 400;\"> where they explore the product. From the features to the user experience, they test if the subscription product is as expected.\u00a0 The only downside is that they have to give their payment details to avail of the free trial.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><strong><span style=\"color: #333399;\">Basic Product:<\/span><\/strong><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There&#8217;s a<\/span><b> basic free version of the product that new users opt for.<\/b><span style=\"font-weight: 400;\"> Businesses restrict access by either offering limited features or placing caps on the users and features(e.g., 10 users per month). If their business needs to access the full features, they upgrade to the premium version.<\/span><\/p>\n<figure id=\"attachment_3014\" aria-describedby=\"caption-attachment-3014\" style=\"width: 641px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\" wp-image-3014\" src=\"https:\/\/fanso.io\/blog\/wp-content\/uploads\/2025\/07\/Dropbox-pricing-strategies.png\" alt=\"Dropbox pricing strategies\" width=\"651\" height=\"385\" \/><figcaption id=\"caption-attachment-3014\" class=\"wp-caption-text\">Dropbox pricing strategies<\/figcaption><\/figure>\n<div class=\"protip\">\n<p class=\"mb-0\"><span style=\"color: #000000;\"><strong>Tip:<\/strong> Consider the cost incurred to provide the free trial against the profit gained once they get converted.<br \/>\n<\/span><\/p>\n<\/div>\n<figure id=\"attachment_3016\" aria-describedby=\"caption-attachment-3016\" style=\"width: 557px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\" wp-image-3016\" src=\"https:\/\/fanso.io\/blog\/wp-content\/uploads\/2025\/07\/Dropbox-Freemium-Model.png\" alt=\"Dropbox Freemium Model\" width=\"567\" height=\"134\" \/><figcaption id=\"caption-attachment-3016\" class=\"wp-caption-text\">Dropbox Freemium Model<\/figcaption><\/figure>\n<h4><strong><span style=\"color: #333399;\">How Does it Help?:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determining product value<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CAC Optimization<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">User engagement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predict revenue generation\u00a0<\/span><\/li>\n<\/ul>\n<h4><strong><span style=\"color: #333399;\">Solution:<\/span><\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Optimize your subscription features<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refine your onboarding experience<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provide strong customer support<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Highlight your product value<\/span><\/li>\n<\/ul>\n<h2><span id=\"Conclusion\"><strong><span style=\"color: #333399;\">Conclusion<\/span><\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The subscription industry is competitive, with new players emerging every day. If you&#8217;re not scratching your head for innovation and novelty, you are bound to lose the race.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">KPIs indicate how your subscription business is performing. It reflects the highs and lows of your business cycle. But identifying the right KPIs is all the more crucial. Indeed, this helps you to avoid hitting a flat note or faulty correlations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, which are the essential KPIs for your subscription business? We hope this guide helps you find the right metrics and some actionable insights to run your subscription business!<\/span><\/p>\n<div class=\"protip\">\n<p><strong>\ud83c\udfeb Related Blogs:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><a href=\"https:\/\/fanso.io\/blog\/prelaunch-checklist-subscription-business\/\" rel=\"follow\">Pre-launch checklist for a new subscription business\u00a0<\/a><\/li>\n<li><a href=\"https:\/\/fanso.io\/blog\/common-mistakes-subscription-businesses\/\" rel=\"follow\">10 Mistakes Subscription Businesses Make &amp; How to Fix Them<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<h2><span id=\"FAQ-Related_to_Best_KPIs_to_Track_for_a_Subscription-Based_Platform\"><span style=\"color: #333399;\"><strong>FAQ-Related to Best KPIs to Track for a Subscription-Based Platform<\/strong><\/span><\/span><\/h2>\n<h3><strong><span style=\"color: #333399;\">1. Which metrics are used to measure subscription revenue?<\/span><\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Monthly Recurring Revenue, Annual Recurring Revenue, Churn Rate, and Customer Acquisition Cost are the key subscription metrics to measure your subscription revenue.<\/span><\/p>\n<h3><strong><span style=\"color: #333399;\">2. What are the metrics to measure customer satisfaction?<\/span><\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Churn Rate, Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and Customer Lifetime Value (CLTV) are crucial metrics for measuring customer satisfaction.<\/span><\/p>\n<h3><strong><span style=\"color: #333399;\">3. What are the 5 most essential KPIs for a Saas business?<\/span><\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The five key metrics to measure KPI are:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monthly Recurring Revenue(MRR)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer Acquisition Cost(CAC)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Churn Rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer Lifetime Value (CLTV)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Net Revenue Retention (NRR)<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Today, &#8220;the customer is king.&#8221; Hence, adopting a customer-centric approach is a survival instinct for businesses today. The inherent drive to stay competent motivates them to periodically track their success. Subscription metrics are powerful tools in their success journey. These insightful metrics provide valuable insights on acquisition, retention, and revenue. Thus, you can continually gauge &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Best KPIs to Track for a Subscription-Based Platform\" class=\"read-more button\" href=\"https:\/\/fanso.io\/blog\/best-kpis-to-track-for-a-subscription-based-platform\/\" aria-label=\"More on Best KPIs to Track for a Subscription-Based Platform\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":3012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_generate-full-width-content":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no"},"categories":[28],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Best KPIs to Track for a Subscription-Based Platform<\/title>\n<meta name=\"description\" content=\"Discover the top subscription KPIs to track for growth. 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