6 Essential Metrics for Subscription Business Success

For any business to succeed, it is essential to track metrics. This is especially true for consumer subscription businesses, where the ability to acquire and retain customers is key. With the right metrics tracking in place, businesses can better understand their customers and capitalize on opportunities. Four main categories of metrics are acquisition, engagement, conversion, and retention. Let’s dive into these metrics and how they can help you optimize your subscription business.

Acquisition Metrics: Getting New Users Onboard

The first set of metrics we need to consider are those related to acquisition. These include free user growth (MoM), payback period (under 6 months), virality (over 1.0), and return on advertising spend (ROAS) (over 4:1). Free user growth (MoM) measures the number of new users signing up each month as a measure of overall growth. The payback period should be monitored closely; if it exceeds six months, strategies may need to be employed to reduce it. Virality measures how many people refer others or share content about your product; this metric should always be consistently above one for successful user growth. Finally, ROAS measures advertising cost efficiency; anything over four-to-one is considered successful in terms of ROI on ad spend.

Engagement Metrics: Keeping Users Interested and Active

When considering engagement metrics, look at the activation rate, total number of activated users, monthly active users (MAU), and cohort engagement numbers. Activation rate refers to the percentage of users who have made an initial purchase or taken an action within a certain timeframe after signing up; this metric should be closely monitored for user retention purposes. Total number of activated users gives you an idea of current business size while MAU shows user engagement levels over time—the higher this number is, the more engaged your customer base is likely to be. Finally, cohort analysis allows you to group customers together based on common characteristics such as age group or signup date; analyzing these cohorts can help you discover patterns in user behavior so that you can improve their experience with your product or service over time.


Metrics tracking is essential for success in consumer subscription businesses; without it, businesses risk overlooking potential opportunities or failing to address issues quickly enough before they become bigger problems down the line. By monitoring key metrics such as free user growth (MoM), activation rate, MAU, and more, businesses can better understand their customers’ wants and needs while capitalizing on opportunities faster than ever before! With the right metrics tracking system in place, any consumer subscription business has a greater chance at success!

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