100 Celsius

6 Metrics Every DTC Subscription Brand Needs to Track

Introduction

For DTC subscription brands, cultivating and expanding active subscriptions goes far beyond sales-centric marketing approaches… In order to succeed, brands need to scratch standard eCommerce practices. 

Historically, eCommerce brands have leaned towards a super reactive approach and not placed enough emphasis on customer retention. The common method of creating subscriptions with generic discounts may seem like the right move, but it’s often not enough to create sustained results and the required compounding growth. 

At 100 Celsius, we understand that standard strategy rarely results in the substantial growth you need in your business. Trust us — it’s essential for DTC subscription brands to adopt a unique mindset toward subscriber sales. 

So before we plunge in deep, remember Rule Number One: don’t automatically apply the general rules of digital commerce to your subscription brand. Subscription brands are a unique beast, and should be treated as such!

Create a compelling reason for customers to subscribe right from the start. From there, you’ve built a foundation that encourages long-term relationships with your customers that fulfill both parties. It’s not about waiting for subscriptions to happen; it’s about making them happen through smart, comprehensive strategies that focus on a greater vision. This is how you truly foster growth. 

Setting intentions is just the beginning! But how do you really know if your efforts are successfully pushing you in the desired direction? We’re going to guide you through the indispensable six key metrics every DTC subscription brand should know. If tracked wisely, these metrics can serve as the strategic roadmap to building a powerhouse brand.

It’s true that DTC subscription brands are tasked with unique challenges. This may be intimidating at first; however, once you master the metrics, success is practically systematic… 

Tracking Subscription Metrics

The traditional way of tracking email or SMS revenue simply isn’t enough when it comes to understanding your subscription business. So, what is the way? 

Beyond Traditional Metrics

Unlike standard eCommerce practices, subscription brands require a much more holistic view and strategy. By zooming out from a sales-driven perspective, you’ll ultimately watch your business grow and meet your monetary goals!

Weekly Tracking - A Must

As you’ll learn below - a solid weekly tracking regimen goes way beyond revenue assessment. Acquisition of new subscribers, the number of subscriptions canceled, the net subscriber growth for the week — these are some of the critical metrics (along with others) that should serve as the core of your subscription model. Why? Because they all offer insight into both the brand’s appeal AND retention strategy. 

Insightful Calculations

It’s absolutely crucial to study the churn rate on a weekly basis. In short, this metric tells you how many customers want to stick around after experiencing the product. This percentage is pivotal for understanding customer satisfaction and loyalty. 

Additionally, subscriber pauses, unpauses, and reactivations of canceled subscriptions can present a goldmine of powerful information. You’ll set off in the right direction when you can get a good grasp of what your subscribers want. 

Working with Your Subscriber Growth Cap 

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All subscription brands have a mathematical growth cap. Instead of being discouraged by this metric, start to understand how yours can help with your strategy instead of hindering it. When monitored and analyzed correctly, this threshold can actually become an entryway to solutions that unlock significant growth.

All 6 Metrics You Need to Track on a Regular Basis

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At 100 Celsius, we’ve found six metrics that, when tracked to a tee, give subscription businesses all the information they need to scale to their goals.

These tracking requirements may be time-extensive, but the results are worth it. Put systems in place to track these metrics daily, monthly, quarterly, and annually, and you’ll build a wealth of knowledge that leads you right to the steps required to take - like a blueprint to achieve growth . 

1. Acquired Subscribers

For DTC subscription brands, tracking new subscribers on a weekly basis should be a non-negotiable aspect of the overall strategy. Essentially, this metric tells you how attractive the brand is to potential customers. Good to know, right? 

By closely monitoring these numbers, brands can work on refining their marketing efforts and capitalize on successful campaigns.

2. Canceled Subscriptions

Understanding the pain points of current customers’ journeys is obviously key to retention. This metric helps bring awareness to next-step improvements! 

As a subscription brand, it’s imperative to stay on top of potential issues with product satisfaction, pricing, or overall customer experience. This metric provides the clues, ultimately leading to corrective measures and better customer service. 

3. Net Subscriber Growth

Building a sustainable subscription business requires information gained from net subscriber growth. By subtracting cancellations from new acquisitions on a weekly basis, brands can assess whether they are gaining or losing subscribers overall. Do you want the scoop on your brand’s retention successes and overall appeal? This metric will show you. 

4. Paused Subscriptions

Get a good sense of your customers and their thought processes by studying the number of paused subscriptions. Monitoring pauses help to identify whether customers are temporarily disengaging or planning to cancel. Through this metric, you can also study patterns that point to the cause of this less-than-ideal decision. 

5. Unpaused Subscriptions

There’s a lot that can be learned from the paused subscribers who choose to reactivate their subscriptions. This metric shows which re-engagement efforts actually work. From here, brands can create rock-solid win-back strategies that do the trick again and again.

6. Pause to Cancel Ratio

Through the pause-to-cancel ratio, brands can discover where they stand with customers when faced with the decision to cancel. A higher ratio indicates that customers prefer pausing over canceling, offering brands an opportunity to introduce retention incentives or customize pause options.

Track Metrics, Reap Results

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With all the unique challenges subscription brands face, there are equal (if not more) opportunities for understanding and fostering growth. By implementing a proactive mindset in place of reactive or conventional strategies, cultivating substantial growth is very possible — AND empowering. 

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Create a compelling reason for customers to subscribe from the beginning, and immediately commit to regular tracking and analysis. This willingness to learn and adapt along the way is what allows successful subscription brands to optimize their subscription model and maintain sustainability. 

Conclusion

We’ll be the first to admit that our method is meticulous. With that said, this strategy of tracking metrics is pure gold for understanding the inner workings of your subscription brand! By creating a discipline of tracking these six metrics regularly, you’ll become liberated by the insight and data you’ll receive as a result. 

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This is just the tip of the iceberg; there’s so much more to share on the topic of subscription brand growth. If you’d like more guidance on how to evolve past challenges and level up your DTC brand, schedule a call with us today!