- Raising Prices
- Frequency (already have the Subscription model)
- Ascension(moving existing customers to higher priced/margin-ed products/services)
- White Label partner services, that don’t compete with my members’ businesses.
- Affiliate offers. Including: ClickUp.
Idea: Have something available only to members who have been a member for 6 months…
Gives them a reason to stay a member for at least 6 months… Gives them added prestige to show-off when they have bought it…
Numbers tell us the whole story
Keep tracking and improving.
Some of the key numbers to stay aware of, and know:
- Conversion Rate.
- Average Transaction Value.
- Break-even point.
All typically measured on a monthly basis.
Improved just three key numbers by only 10% (leads, conversion rate, ATV), yet the result to the bottom line is a 431% improvement.
In the first scenario, the business owner was taking home $120,000 annually before taxes. In the second scenario, he takes home $517,000 per year.
Here are some of the key metrics we need to measure and manage in our subscription/recurring business model:
- Monthly Recurring Revenue.
Our total recurring billings. We want this number to be growing over time. If it’s flattening out or declining we may have either a churn problem or a customer acquisition problem.
- Churn Rate.
This is the percentage of recurring customers that cancel subscriptions or stop buying from us. Filling the bucket is great but not if it’s leaking at a rapid rate.
- Customer Lifetime Value. <<< Increasing this number is where the money is.