Subscription Metrics Report
In this article:
- Monthly Reccurring Revenue:
- Average Revenue Per User:
Subscription Metrics is a report inside Kajabi that tracks data related to subscriptions over time.
To view your Subscription Metrics Reports:
- Open the Website tab from your dashboard and select Analytics.
- Click View in the Subscription Metrics box from the analytics dashboard.
Monthly Reccurring Revenue:
What is MRR and who is it important to?
MRR, or Monthly Reccurring Revenue, is all of your reccuring revenue normalized into a monthly amount.
This report is vital for subscription businesses because revenue and profits trickle in over time. So, its important to measure growth and revenue in a similar way. MRR provides an easy way to forecast future cash flows.
How to calculate MRR?
The best way to calculate MRR is to obtain the average monthly subscription multiplied by the number of subscription payments minus any subscription discounts.
MRR = All subscriptions * ((monthly average subscription * number of subscription payments) - subscription discounts))
MRR = Total Monthly Subscription Revenue - Monthly Discounts
For instance, if you have Customer A paying $150/monthly and Customer B paying $200/monthly, your MRR would be $350.
Average Revenue Per User:
What is ARPU?
ARPU, or Average Revenue Per User, is especially useful if you have a business with multiple tiers of subscriptions.
For example, if you have a 3 tiered subscription model where your plans start from $10 to $50 and $80 understanding ARPU will help you make pricing decisions and understand if your type of customer skews towards higher or lower pricing plans.
How is ARPU calculated?
MRR ÷ Active Customers = ARPU
Strategies to increase and optimize ARPU?
- Have a clear add-on or upgrades strategy
- Focus on retention
What is Churn?
Churn is a business metric that calculates the number of customers who leave a business or stop paying over a given period of time. Customer churn is important to understand the health and retention of your business.
Churn Rate Formula
The Churn Rate Formula can be calculated as the number of churned divided by the total number of customers:
Churn rate = (number of churned customers / total number of customers) 100
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