Every DTC brand wants to know more about their customer: What are they purchasing? How often are they purchasing? What is their lifetime value (LTV) over six months? How about after 12 months?
The same goes for ecommerce companies who want to grow their subscription businesses; it’s all about getting to know the subscriber. How are subscription offerings impacting LTV? When are their customers converting to subscribers? How is their upselling strategy impacting average order value (AOV)?
Peel specializes in answering these questions through automated analysis of post-purchase revenue data. As their customers required more depth in their subscription analysis, Peel built a direct integration with Recharge to study subscribers and subscriptions with all the metrics needed for growth. Merchants no longer need to rely on customer tags like “active subscriber” and “inactive subscriber” to manually analyze their subscription business.
Peel x Recharge: Powerful metrics & customization
- Active Subscribers
- Active Subscriptions
- Churned Subscribers
- Churned Subscriptions
- Duration of Active Subscriptions
- Duration of Active Subscribers
- Duration of Churned Subscriptions
- Duration of Churned Subscribers
- Monthly Recurring Revenue (MRR)
- Subscribers Churn Rate
- Subscribers Growth Rate
- Subscriptions Churn Rate
- Subscriptions Growth Rate
- Net Sales – Subscribers
- Net Sales – New Subscribers
- Net Sales – Existing Subscribers
- New Subscribers
- New Subscriptions
- Total Sales (Subscribers)
- Subscriptions Revenue Rate
- Active Subscriptions per Cohort
- Active Subscribers per Cohort
- Cumulative MRR per Subscription
- Cumulative MRR per Subscriber
- Earned Profit per Subscribers Cohort
- Earned Profit per Subscriber
- Earned Profit per Subscription
- Earned Profit per Subscription Cohort
- LTV per Subscriber
- LTV per Subscriber Cohort
- LTV per Subscription
- LTV per Subscription Cohort
- MRR per Active Subscription
- MRR per Active Subscriber
- MRR per Subscribers Cohort
- MRR per Subscriptions Cohort
- Activation Rate
- Days to Activation
- New OTP Subscribers
- Rate of One-Time to Subscriber
- Subscribers Rate
These metrics allow ecommerce teams to dig into their subscription data and find out more about their customers and their subscription performance. Notably, users can look at each of their metrics for subscriptions as well as for subscribers. This is particularly useful as individual customers may have multiple subscriptions, so comparing subscription vs. subscriber metrics can often provide completely unique information.
Additionally, Peel empowers merchants to look at their subscription metrics by cohorts—based on the months that the subscribers were acquired. This opens a whole new avenue of useful analysis in finding trends within different subscriber cohorts and discovering the campaigns and strategies that best served growth.
From MRR by cohort to see which subscription cohort is the strongest, to subscription or subscriber retention and churn by cohort—having a granular look by months and by the segments allows users to find growth opportunities.
For extra layers of granularity, users can dig further into each metric, segmenting by locations, products, or subscription types (cancellation reason, day of the month, order frequency, pre-paid). This provides more customization and flexibility for users to find exactly what they are looking for within key metrics like MRR, LTV, churn rate, growth rate, and more.
Subscription businesses demand more
Peel developed this integration as their Recharge users desired the ability to answer more of their questions about their subscription business.
“I want to look at active subscribers by SKU” became the ability for merchants to segment by SKU to understand the number of subscriptions per product. This gives them the perfect view of which products are attracting more subscriptions, which can inform everything from advertising and email strategy to homepage features and other campaigns.
“I want to know my top 5 cities with subscription sales” became the ability for users to segment by location, quickly identifying their top 3, 5, or 10 cities by subscription rates. They can use this to create hyper-targeted campaigns to engage their key demographics in those locations.
“When are my one-time purchasers (OTP) becoming subscribers?” turned into a whole suite of metrics that focuses on the conversion of OTP or intermittent purchasers to subscribers. This allows merchants to discover how many customers make a one-time purchase and then become subscribers and the number of days between their first purchase and first subscription. This can inform when to send campaigns to one-time purchasers by using the Days to Activation and Rate of One-time to Subscriber metrics. From there, The New OTP Subscribers metric shows the impact (by percentage) of those campaigns.
“How do I know how many of my customers are subscribers and how long they stay subscribed or when they become subscribers?” inspired Subscribers Revenue Rate. Broken down by monthly cohort, this metric allows merchants to understand the influence of subscriptions on their business if they also offer one-time purchases. Having analysis that compares subscribers to all customers is instrumental in understanding how to grow the subscription side of the business or make overall strategic decisions.
“If my customers prepay for subscriptions, how can I look at an analysis that splits the subscription payment over the months” led to Earned Profit per Subscribers Cohort, which provides a view of the profit over time to more accurately reflect the customer’s journey with the brand vs. looking at LTV by Subscriber, which would display all of the profit upfront for the month in which the charges occur.
By listening to their customers, Peel was able to develop a robust range of subscription metrics that supercharges subscription businesses.
To get started analyzing your subscription data, you can start a 15-day free trial with Peel on the Shopify App store. Be sure to find Recharge under “Connections and Data Sources” in Peel to set up your connection.