Subscriber growth rate

Formula

Subscriber Growth Rate = ((Ending Subscribers - Starting Subscribers) / Starting Subscribers) * 100

Example

Why is Subscriber growth rate important?

Subscriber growth rate is a key metric for assessing the success of an ecommerce business’s subscription service. It helps inform management on the strength of their customer acquisition efforts and their ability to attract and retain customers. Growth rate also provides insights into customer and product satisfaction, and can indicate the overall health and future potential of a company’s subscription business.

Which factors impact Subscriber growth rate?

The factors impacting the Subscriber growth rate include visibility and awareness, the customer onboarding experience, pricing and subscription packages, discounts and add-ons, and customer service.

How can Subscriber growth rate be improved?

There are several strategies an ecommerce business can employ to increase their subscriber growth rate. These include increasing visibility and awareness through marketing campaigns and leveraging influencer partnerships, improving the customer onboarding experience, optimizing pricing and subscription packages, offering discounts and add ons, and providing excellent customer service.

What is Subscriber growth rate's relationship with other metrics?

The Subscriber growth rate is closely linked with other ecommerce metrics, such as total subscription revenue, average order value, churn rate, and customer lifetime value. A company can use these metrics in tandem with the Subscriber growth rate to create an accurate picture of their subscription business and more effectively track the health and performance of their company.