Several key metrics are crucial for assessing the success of a subscription-based business. These include:
- Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer. - Customer Lifetime Value (CLV): The total revenue a business expects from a single customer over the duration of their relationship. - Churn Rate: The percentage of customers who cancel their subscriptions within a given period. - Monthly Recurring Revenue (MRR): The predictable revenue a business can expect each month from subscriptions.
Monitoring these metrics helps businesses make informed decisions about marketing, customer service, and product development.