Today, many users take subscription services for granted. Television streaming services like Netflix have been requiring subscriptions for years. The same is true of many other types of services offered online. Customers can now sign up for subscriptions to receive everything from wine to pet products monthly. It may seem like such services are entirely technology based, but well before computers customers paid for milk delivery, newspaper delivery, and other subscription services. The difference is technology today makes the process easier. Therefore, large corporations can now track many more subscriptions at once and collect payments for those subscriptions with far less effort.
Despite the supposed ease of setting up a subscription-based service today, there are challenges. One is trying to track how profitable the subscriptions are at any given time. If you own a business offering a subscription service, you need a way to track multiple data points and figure out what they all mean. The solution is subscription analytics software.
What is Subscription Analytics Software?
Subscription analytics software is designed specifically to help companies specializing in subscriptions analyze data. The point of using the software is similar to the point of using e-commerce analytics software. However, there are some key differences in how the two types of software work. That is why selecting the right software is vital.
E-commerce companies rely upon drawing in new customers who make one-time purchases. Subscription services rely upon keeping existing customers happy and engaged. They are more customer relationship management (CRM) oriented. Those variations produce distinctly different types of data. Subscription analytics software typically includes data points like these:
Churn rate is the number of subscription cancellations that take place during a defined time, such as a specific month of the year. It is typically expressed as a percentage of total customers.
Monthly recurring revenue (MRR) is the amount earned each month. Tracking it indicates decline or growth rates for the company.
Average revenue per user (ARPU) and customer acquisition cost (CAC) go together. To remain profitable, the company must have a higher ARPU than CAC.
What Are the Benefits of Subscription Analytics Software?
Subscription analytics software is beneficial because it provides real-time data insights. It allows you to see how customers are acquired. You can also track how long they continue using your service. By analyzing the various data points, you can also determine why certain trends occur. For example, if you also offer a one-time use option, you might notice customers tend to use it to try your service before they subscribe. You can use that data to adjust how your company operates and maximize earning potential.
Who Uses Subscription Analytics Software?
Any company that offers subscriptions can use subscription analytics software. That includes various streaming app services and subscription box delivery services, such as Bark Box. All such companies can benefit from the data collected. There is no limit as far as the sizes of the companies who can use such software. However, it is often most useful to large companies needing to track millions of annual transactions of types. For example, Amazon uses analytics software to track the success of its Amazon Prime service.
What Are Some Top Subscription Analytics Software Brands?
If you want to use subscription analytics software to help you track the growth of your company, you need to select a software brand. Many analytics software brands track similar types of data. However, they also offer certain unique features. Here is a brief overview of some of the top subscription analytics software brands:
Chargebee is a platform that provides billing options for subscription services. It also provides a wide range of data analytics. It provides customized dashboards and in-depth data, including revenue per subscription. Users can print custom data reports based on those analytics.
ProfitWell is a Software as a Service (SaaS) company that helps businesses increase customer retention through data analytics. It tracks subscriber activities for companies to eliminate the need for in-house monitoring. It also provides a tool to help companies optimize the amounts charged for subscription services.
ChartMogul users can track subscription metrics from multiple sources. ChartMogul offers service integration, webinars, and convenient mobile apps as well. Features like the ability to connect subscriptions and merge customers in databases create more accurate data.
RevenueCat allows users to track multiple data points easily in one place. Those data points include active users, new customers, and active subscriptions. RevenueCat offers integration with other popular tools, such as Facebook Ads and Slack. All data is provided in real-time.
Recurly allows users to scale their businesses and improve growth through data analytics. The platform incorporates intelligent retention to limit churn. It also assists with automation of recurring payments and billing practices. Analytics provided by Recurly include simplified dashboard displays and trend indicators.
Baremetrics offers smart dashboards, trial insights, and future forecasting based on real-time data analytics. It also allows businesses to record in-depth customer profiles, which improve data analysis. Cancellation insights offered by Baremetrics allow companies to figure out why customers are lost and adjust their business practices accordingly.
How Much Does Subscription Analytics Software Cost?
When looking for subscription analytics software, the wide range of prices may surprise you. That range is attributable to a few key factors. First, most companies offer several subscription levels. For example, Chargbee provides free, $249 per month, and $549 per month options, as well as custom pricing. Second, pricing is typically based on company size and often customized. Third, each brand offers different specific features. The range of features often dictates the cost.
If you own a mid-sized company, you can expect to pay approximately $500 per month for analytics from companies like Recurly and Baremetrics. However, if you own a large company with an extensive revenue stream you may pay considerably more, depending on the service you choose. For example, ChartMogul charges $15,000 per year for its top-level subscription service. Spend some time up-front to find the best service for your company. Doing so can save you money in the future.