5 Key Subscription Analytics Every SaaS Company Must Measure to Support CLV Growth

Measure Subscription Metrics to Support Your CLV Growth

"What gets measured gets managed" is the famous quote by Peter Drucker and rightly so. For B2B SaaS companies measuring your subscription analytics directly impacts your revenue operations. In this blog post, we'll outline the key metrics that B2B SaaS companies should track and how those metrics support revenue operations for CLV Growth.  

In today’s B2B market, subscription models offer a win-win for both vendor and customer, but this challenges your business to identify the correct analytics to measure your customer’s relationship with your product and company. Therefore, measuring your subscription analytics supports your CLV Growth and takes center stage of your revenue reporting. 

CLV Growth
What is CLV Growth? CLV Growth is the strategic approach to creating long-lasting relationships with your customers, ultimately growing your revenue. Key analytics that measure customer data over previous years provide better data, and better analysis, supporting your CLV Growth efforts. With this data, converting prospects into paying accounts and renewing and expanding existing customers requires less manual information from your team, making it more efficient and effective. 

To plan your CLV Growth you must know your current Customer Lifetime Value (CLV). CLV measures the total value of a customer over the lifetime of their relationship with your company. Identifying your CLV provides the clarity your strategic roadmap needs for assessing acquisition costs and ways to effectively retain customers. A report by Forrester supports this stating, “Pricing and packaging must be as simple and transparent as possible, promote retention and account growth, monetize buyer value, and drive a profitable business for the seller.” 

Subscription Analytics 101: Know Your Revenue Input
Now that you know the benefits of tracking your CLV, let’s dive into the essential analytics for any B2B SaaS company seeking to measure its CLV Growth: 

1. ARR - Annual Recurring Revenue is the value of the recurring revenue of a business’s term subscriptions normalized for a single calendar year.

2. ARPU - Average revenue per unit calculates the total revenue divided by the number of subscribers.

3. Subscription MRR - Subscription MRR measures the recurring monthly revenue from subscriptions. This provides visibility into the health of your customers' recurring payments. If your subscription MRR rapidly drops then customer needs are not being met, signifying potential churn risks. 

4. Renewal rate - The measure of customer retention over a specific time period, either weekly, monthly or yearly.

5. Churn rate - Measurement of customers that do not renew their subscription. This metric is key to understanding your growth and revenue trajectories. 

Subscription Analytics Powers CLV Growth
To increase revenue, B2B SaaS companies need to focus on the five listed key subscription analytics. Understanding those key subscription analytics allows you to strategize how available resources can be prioritized, powering your CLV Growth. Having those analytics readily available and current is a challenge for many companies. Fortunately, Cleverbridge has solved this problem for you with our subscription analytics dashboard. 

“Our subscription analytics dashboard empowers you to make informed and timely decisions regarding your subscription business, allowing you to grow and maximize your CLV.” 

Measuring your subscription analytics is critical to understanding the health of your customer relationships and, therefore, your CLV Growth. However, it can be difficult to know where to start. Providing an experience that accommodates and enables your B2B buyer to complete a quick, frictionless purchase that doesn’t require any non-essential human interaction will pave the way to success and, ultimately, increased CLV. 

Our team can support you with providing the experience your B2B customers expect and, in return, boost your conversion rates, reduce churn, and maximize your CLV. Get in touch today so we can support your B2B growth. 

Help support my B2B growth