One of the significant aspects of growing a successful subscription-based business is identifying and leveraging the most important data points available to you. The right data can help you understand your customers’ intentions, motivations, and tendencies, so you can craft a recurring billing model that better meets their needs. As your business grows, it’s even more critical to partner with a subscription platform to help you make analytically driven decisions. Here are four ways you can use data to make important decisions for your business.
Evaluate the Performance of Plans and Trials
Every business that offers subscriptions knows the importance of testing new plans and trial options. While 30-day free trials might be a great idea when you are just starting, it might make more sense to start offering 7-day trials as your business grows. The answer always lies in the data. Start testing new options and see if the number of new or returning subscribers increases. Offer new pricing models and see if your monthly revenue increases. You can always go back to your previous offerings and test out a different direction if you don’t see the changes you want. Growing your subscription-based business is about staying agile and constantly testing new solutions. Thankfully, data can help you do that efficiently and effectively.
Understand Your Churn Numbers
“Churn” is the rate at which you lose subscribers over the course of a defined range of time, and it is a valuable indicator of the overall health of your subscription-based business. This data can help you predict the direction your business is heading and decide what changes you want to implement next. If your churn rate is high or increasing, you should start by figuring out why you are losing customers and how you can reverse that trend. If your churn rate is low, you know you can look to the future and start planning the next big move for your business.
Offer Personalized Solutions
The more you understand your customers, the better you can serve them with your product or service. When you partner with a subscription management platform, you can use data about your subscribers’ preferences and tendencies to create more personalized solutions. If you lose a lot of subscribers right after their discount ends, it could be time to reevaluate your pricing models. If you see more churn during a particular season or time of the year, you could offer a subscription pause functionality or send discount codes to loyal subscribers. Data helps you cater to your customers and meet their needs.
Measure the Success and Growth of Your Subscription
Ultimately, data can help you track the growth of your business. You might keep track of what regions your customers are from and notice opportunities to expand into new countries. The right subscription management platform can make it easy for customers to pay for your service using their currency or preferred payment gateway. That way, you can continue enjoying a consistent upward trend. Set all your important benchmarks and use data to watch as your business grows and you reach even your biggest goals.
About Recurly
If you are ready to take the next step with your subscription-based business, it’s time to partner with Recurly. The world of subscription services continues to expand every year, and Recurly can help you stand out from the crowd. They offer the insight you need to refine and streamline every step of the recurring billing process for your business. From optimizing the subscriber experience to invoice management, Recurly is the best subscription management and billing platform to help you grow your business. They have helped manage over 40 million subscriptions and have been a leader in the industry for more than a decade. Their range of smart tools and data-driven solutions can help you scale and increase the lifetime value of each customer. Whether you want to run a churn calculation or implement a new pricing model, trust Recurly to help you do it.
Get access to essential analytics and tools to grow your subscription business at https://recurly.com/
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