Now that you have your membership business up and running, you are now focused on maintaining your business and increasing revenue, it is important that you are able to track your online business' progress so you can know how your business is doing.
Here are a few important business metrics that you should be aware of in your membership site to make sure that business stays on par!
Customer Lifetime Value (CLV)
We already know that customer retention is extremely important for your membership site, but what about the financial value of your members? This is what CLV is.
Using CLV, membership business owners are able to understand exactly on average how much each customer is worth financially to your business. Knowing this number helps you understand how much it costs in advertising campaigns and marketing to actually close a customer and how much it may take to keep them. Customer Lifetime Value can also include upgrades or add-on purchases.
Member engagement is another extremely important metric for your membership business because this shows how active your members are in your membership site and with your products.
You can track member engagement by looking at how often people login into your membership site, number of content downloaded, how long members are active in their profiles, the completion rate of online courses (if you offer courses), and more.
Understanding these numbers will help you to understand just how attractive your offerings truly are. You can use this information to improve your membership site and use new methods to keep your members engaged.
Churn rate is basically the rate at which you lose members. This is calculated by looking at the percentage of members who cancel their subscription on your site during a certain time period.
Actively calculating and paying attention to churn rate will help you see how stable your membership truly is, as well as help you create a game plan to retain more members in the future.
Monthly/Annual Recurring Revenue
Having an understanding of your business' cash flow is important so you know whether or not your business is reaching its goals and if it's having healthy growth or not.
Based on the type of membership site you have, it's crucial to know how much is coming in each month and each year, minus sales or payment plans. Knowing these numbers will help you know whether or not this venture is truly worth investing in further.
Trial Conversion Rate
If you offer members a free trial on your site or a free membership that can be upgraded to a paid membership, being able to track and keep up with the amount of people who actually convert is really important!
If you start to notice that customers are continuing their subscription after the free trial or are gradually upgrading to a paid membership, you can safely assume that your plan is working. However, if you don't notice a high conversion rate, it may be time for your marketing team to go back to the drawing board.
We know, there are a number of things to keep up with when you start a membership site, so many that it can make your head spin at times!
Thankfully Memberpress has some amazing features and integrations that can help make the process much easier for you! So when you build a membership site with us, you know you're in good hands! Why not give us a try today?
What metrics are important to you in your membership business?