Truly effective business decisions are driven by insights and a deep understanding of consumer behaviour. It can be hard to draw the right inference from a huge gamut of analytic data. So, to make your life easier, we’ve put together a list of 7 subscription metrics that you must always keep an eye on. These will enhance your understanding of how your OTT business is running and what you can do to take it to the next level.
1. Subscriber Churn –
Starting with the most obvious one. Subscriber churn is calculated using the following formula –
Considering how many options are available to the discerning customer these days, there is going to be a standard level of churn in the subscriber numbers. The thing to keep an eye on is if the overall cancellation rate is stable or fluctuating. And if it is the latter, who are the customers joining or leaving and what their content choices are. OTT churn management can be imperative to meeting your top-line revenue targets.
2. Subscriber Acquisition Cost –
An increasing rate of churn is not necessarily a bad thing, as long as you have a handle on the acquisition cost per customer.
The subscriber acquisition cost is calculated as
In a cluttered environment, everyone has to spend more to capture the attention of the audience. The thing to plan for is how one reduces the overall acquisition cost & ensure that the lifetime value of each subscriber is a multiple of the amount spent on acquiring them. If there aren’t enough budgets to throw in freebies for new sign-ups, consider expanding marketing efforts. Test out new outreach methods and check what boosts your OTT subscription billing.
3. Monthly Recurring Revenue (MRR) –
This figure can give you a view into the profit potential of the business short-term and is a very important indicator of the long-term health of the business.
As long as the MRR is increasing over time the business is going in the right direction. But a flatline might indicate that there maybe be holes that need to be plugged. The indicators of these issues can be found by looking at where the most MRR is coming from, which customer is spending and what content segments are working. Furthermore, one can look at where is the most MRR being lost.
4. Average Revenue Per User (ARPU) –
In subscription-based billing, the ARPU is another effective indicator of the health of the subscriber base. The Average Revenue Per User is calculated using the following formula –
This can be a way to measure what promotions are working and if there are upselling mechanics in place that are driving significant results. It can also help segment the customers for targeted marketing campaigns.
5. Subscriber Lifecycle –
Once you’ve got someone to subscribe, the next most important thing to look at is what does the customer’s lifecycle on the platform look like. Is it seasonal? Does it change across plans? One of the things this will help you do is identify points of churn and address them. The other is it will help refine your messaging because you should not be talking to a one-month-old customer and a ten-month-old customer in the same manner.
6. Subscriber Lifetime Value (LTV) –
The lifetime value or LTV from a subscriber is an estimate of the value earned from an average subscriber over the time that they stay on the platform.
The LTV is calculated by
This metric is extremely important as it can dictate what the cost of acquisition for each customer should look like. It can dictate key decisions around sales and marketing spends and answer the imperative question of how to get new customers while still maintaining profitability.
7. Subscriber Return on Investment (ROI)
From a business profitability point of view, the ROI is the most essential health indicator for the business. This metric can be measured by the following formula
The ROI can give you a very clear picture of the growth potential of the business and its long-term viability. If the return on investment is high then the platform can look at investing in new marketing initiatives and more variety of content. This in turn can fuel newer user acquisition.
Magnaquest’s Subscription Management and Billing system will not just provide you with the above metrics but also additional vital information such as customer demographic, packages/content ordered, tickets raised, service breakdowns, customer satisfaction, etc. While there may be other significant KPIs that can be looked into, the above-mentioned analytics makes for a solid bedrock for measuring success and future potential.
Magnaquest can also bring together all of these data points along with the data from a viewer measurement system and equip you with a dashboard that gives you a birds-eye view into the health of the business. This will ensure that your target optimally, retain high-value subscribers and also course-correct quickly if required.
To know more about our Analytical Reporting tool, Contact Us
52 comments
https://israel-lady.co.il/
May 16, 2022 at 7:31 pm
Good post. I learn something totally new and challenging on blogs I stumbleupon every day. It will always be interesting to read through articles from other writers and use a little something from other sites.
Proxies For Scrapebox
June 6, 2022 at 10:20 am
Youre so cool! I dont suppose Ive learn something like this before. So nice to find any individual with some original ideas on this subject. realy thanks for beginning this up. this website is something that’s wanted on the web, someone with somewhat originality. helpful job for bringing something new to the web!
Buy Fast Proxies
June 8, 2022 at 4:42 pm
My partner and I absolutely love your blog and find almost all of your post’s to be precisely what I’m looking for. Would you offer guest writers to write content for you personally? I wouldn’t mind producing a post or elaborating on a number of the subjects you write with regards to here. Again, awesome web site!
www.xmc.pl
June 18, 2022 at 5:08 am
Took me time for you to read all the comments, but I truly enjoyed the piece of writing. It proved to be in actual fact helpful to me and I’m sure to all of the commenters right here! It’s usually huge when you can not just be informed, but additionally engaged! I’m certain you had enjoyable writing this write-up.
Aurliesrpt
July 8, 2022 at 11:38 am
quick hit slots
luckyland slots casino
freeslotsonline
Shaynasrpt
July 13, 2022 at 6:42 am
do my dissertation
buy dissertation writing services
dissertation help articles
Shaynasrpt
July 13, 2022 at 7:44 pm
average dissertation length
phd dissertation help proposal
dissertation assistance
Joetesrpt
July 15, 2022 at 8:34 am
research writing help
masters dissertation writing services uk
dissertation handbook
Joetesrpt
July 16, 2022 at 6:51 am
dissertation assistance
tips on writing a dissertation
dissertation help service
Chandasrpt
July 20, 2022 at 3:21 am
help with dissertation writing
dissertation writing and editing
dissertation handbook
Avivasrpt
July 21, 2022 at 2:29 am
psychology dissertation
search writing help
dissertation help glasgow
Dortheasrpt
July 21, 2022 at 9:48 pm
mba dissertation help
dissertation help galway
writing editing services
Verieesrpt
July 22, 2022 at 5:10 pm
writing a dissertation methodology
psychology dissertation
how long is a dissertation paper
Glynnissrpt
July 23, 2022 at 8:26 am
research writing help
dissertation uk help
dissertation write
Glynnissrpt
July 23, 2022 at 11:38 am
write a dissertation abstract
defending dissertation
help with my dissertation
Suzannsrpt
July 24, 2022 at 6:11 am
dissertation help service general
dissertation writing assistance
writing dissertation
Sallisrpt
July 25, 2022 at 12:44 am
all but dissertation
dissertation defense
write your dissertation
Darsiesrpt
July 25, 2022 at 9:17 pm
dissertation definition
dissertation proposal writing help
dissertation writing service
Tandisrpt
July 25, 2022 at 10:06 pm
usa casinos on line
casinos online real money
online casino games for real money
Mabellesrpt
July 26, 2022 at 7:09 pm
proposal and dissertation help geography
language editing phd thesis
writing a dissertation abstract
Tandisrpt
July 26, 2022 at 11:24 pm
online casino no deposit welcome bonus
casino welcome bonus
no deposit welcome bonus casino
Jenneesrpt
July 27, 2022 at 4:49 pm
+writing help
dissertation topic
ucl dissertation help
Abagaelsrpt
July 28, 2022 at 12:14 am
best online casino reviews
free sign up bonus no deposit casino
online bingo real money
Herminasrpt
July 28, 2022 at 1:13 pm
dissertation handbook
creative writing course in mumbai
need help
Shaylasrpt
July 28, 2022 at 11:37 pm
free casino no deposit
best online casino
casino bonuses online
Audresrpt
July 29, 2022 at 8:51 am
service writing
getting help online
dissertation help articles
Verenasrpt
July 29, 2022 at 10:25 pm
online real money casino
blackjack real money
top online casino
Hestiasrpt
July 30, 2022 at 4:45 am
writing your dissertation in a week
dissertation write
writing a masters dissertation
Dixiesrpt
July 30, 2022 at 8:45 pm
online casino with free signup bonus real money usa no deposit
casino games that pay real money
mobile gambeling
Laureensrpt
July 31, 2022 at 6:40 pm
top online casinos usa
mobile casino
online mobile casinos
Frannisrpt
August 1, 2022 at 7:31 pm
mobile casino games for real money
online casino review
online casino best bonus
Pearlsrpt
August 2, 2022 at 5:53 pm
mobile casino real money
online casino win real money
top us online casino
Bobbiesrpt
August 3, 2022 at 4:23 pm
what is the best online casino for real money
blackjack payout
best online casino us
Lesliesrpt
August 4, 2022 at 2:36 pm
online casinos for usa players
mobile casino real money
best deposit casino bonus
Trudiesrpt
August 7, 2022 at 2:40 pm
win money online
best deposit bonus casino
best no deposit bonus online casino
Honorsrpt
August 7, 2022 at 10:18 pm
cnet best vpn
tiger vpn
download express vpn
Jaynellsrpt
August 8, 2022 at 2:12 pm
usa online casino
usa casino
online casinos real money no deposit
Teddiesrpt
August 8, 2022 at 6:52 pm
best vpn mac
dot vpn
the best vpn
Dulceasrpt
August 9, 2022 at 10:19 pm
best casino welcome bonus
blackjack payout
best online casino deposit bonuses
Jenneesrpt
August 10, 2022 at 3:07 am
free vpn for windows 7
best business vpn router
best free vpn
Carolansrpt
August 10, 2022 at 9:44 pm
online casino bonuses
gambling online for real money
real money casinos
Jenneesrpt
August 10, 2022 at 11:15 pm
best vpn proxy betternet
free vpn app for windows
vpn browser
Ashleighsrpt
August 11, 2022 at 7:38 pm
trustzone vpn
best vpn uk
best windows vpn 2018
Fanyasrpt
August 11, 2022 at 9:15 pm
online casino for us players
online casino sign up bonuses
bonus casino
Kelseysrpt
August 12, 2022 at 5:03 pm
mcafee vpn
which vpn to buy
best rated vpn
Carolinsrpt
August 12, 2022 at 10:20 pm
free casino money
best online casino to win money
free no deposit
Laurellasrpt
August 13, 2022 at 2:16 pm
vpn for mac free
best free vpn pc
free vpn\\
Fifinesrpt
August 13, 2022 at 8:15 pm
online casino reviews usa
bingo casino online
casino free bonus
Fifinesrpt
August 14, 2022 at 4:29 pm
best online casinos for us players
casino signup bonus
casino games for real money
Sheelaghsrpt
August 15, 2022 at 1:31 am
best free pc vpn
free vpn download
cloud vpn free and unlimited
Fifinesrpt
August 15, 2022 at 12:09 pm
best usa online casino
free welcome bonus no deposit
best online casinos for us players
Sheelaghsrpt
August 15, 2022 at 4:51 pm
best vpn for mac free
best vpn for torrent
free vpn chrome extension