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Top 20 Subscription and Ecommerce Metrics (Charts Included)

Hone your business intelligence with these top subscription metrics. See exactly how to measure ecommerce success to make data-driven decisions for your brand.

Subscription Metrics

Much like a compass helps navigate a journey, data can help brands and ecommerce merchants navigate a path toward success. Tracking the right subscription metrics and ecommerce trends can gauge the overall health of your business, highlight areas for improvement and help brands and merchants make data-driven decisions for the future.

Top 5 Ecommerce Metrics  

No matter the industry, there are several metrics critical to all businesses with ecommerce offerings. These are the top metrics brands and merchants should consistently measure. Learning how to measure ecommerce success should be a top priority for merchants looking to increase revenue.

Return on Ad Spend (ROAS)

The amount of revenue a company earns

Formula: Revenue ÷ Advertising Cost

Customer Lifetime Value 

Projected revenue that a customer will generate during their lifetime

Formula: (Recurring Average Order - Cost of Goods Sold) ÷ Churn*

Order Conversion Ratio              

Percentage of website visitors who place an order 

Formula: Orders ÷ Website Visits

Average Order Value

Average total of every order placed over a defined period

Formula: Gross Revenue ÷ Orders

Average Days to Ship 

Average number of days to receive a shipment confirmation from fulfillment

Formula: Mean # of days to ship

*There are several ways to measure Customer Lifetime Value. See other formulas here.

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Top 5 Subscription Metrics  

The successful subscription business model relies on customer loyalty to produce recurring revenue. Track these metrics to determine if your brand has a strong subscription strategy.

Rebill Rate

Percentage of initial orders (Cycle 0) that convert to a rebill (Cycle 1) order

Formula: Rebill Orders ÷ Initial Orders

Day 0 Cancelation Rate

Percentage of orders that cancel the same day as purchase

Formula: Day 0 Cancelation Orders ÷ Orders

Approval Rate

Percentage of transactions that turn into orders*

Formula: Orders ÷ Transactions

Recovered Revenue Rate

Percentage of revenue that successfully charges after first declining

Formula: Declined Revenue ÷ Recovered Revenue

Refunded Revenue Rate

Percentage of revenue refunded

Formula: Refunded Revenue ÷ Total Revenue

*An order is a successful transaction. A decline is an unsuccessful transaction.

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More Critical Metrics

Once you begin tracking the metrics above, consider keeping a close eye on the following measures as well. The sections highlighted in orange only pertain to subscriptions.

Cost per Acquisition*

Amount of money spent to acquire a new customer

Formula: Acquisition Cost ÷ Orders

Abandonment Rate

Percentage of visitors that get to checkout page, but exit prior to completing purchase

Formula: Orders ÷ # Visitors From Checkout Page

Fraud Ratio

Percentage of orders marked as fraud**

Formula: Orders Marked as Fraud ÷ Orders

Refund Rate

Percentage of order refunded

Formula: Refunds ÷ Total Orders

Churn Rate                                      

Percentage of customers who stop their subscription

Formula: Lost Unique Customers ÷ Starting Unique

Shipped Percentage

Percentage of orders that shipped

Formula: Orders ÷ Shipped Orders

Return Rate

Percentage of returned orders

Formula: Returns ÷ Orders

Average Revenue Per User (ARPU)

Average revenue generating for each active customer

Formula: MRR ÷ Active Customers

Natural Attempt Ratio                 

Percentage of transactions that successfully charge

Formula: Natural Orders ÷ Natural Attempts

Monthly Recurring Revenue (MRR)

Recurring revenue normalized into a monthly amount

Formula: Customers x Average Billed Amount

*Often referred to as Customer Acquisition Cost (CAC).  

** Includes orders manually marked as fraud and orders caught by risk mitigation providers.

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Findings Follow-up

Subscription metrics are useless unless you act on the findings. For example, if churn analysis reveals customers stop engaging with a brand after four purchases, then brands need to strategize how to motivate customers to make a fifth purchase. Moreover, high fraud ratios and low recovered revenue ratio could mean money is being left on the table and it could be time to explore revenue maximization tools within an ecommerce platform.  

It is also important to keep in mind that simply gathering this data should not drain valuable time and resources. Brands and merchants serious about these metrics should leverage an ecommerce and subscription management platform that provides high-level overviews of key metrics, and then drills down into trends or individual customers and transaction. Remember, the whole point of tracking metrics is to learn, adjust and grow your business.

See how sticky.io empowers brands and merchants to make data-driven decisions. Request a platform demo today.