SUBSCRIPTION METRICS 101: HOW TO SET UP A BASIC METRICS HIERARCHY

Summary from the TLDR Marketing newsletter

Companies that are great at developing tech products have clearly defined metrics, review those metrics regularly, and try to determine how their work impacts those metrics. The basic hierarchy of metrics that subscription products should use cover 3 categories, each with several primary and secondary metrics. First, how well the product attracts new users is measured with metrics like Conversion Rate to Paid and Trial Start Rate. How long users stay in the product is measured with Lifetime Value and various types of retention metrics on a cohort basis. Finally, how customers leave the product can be monitored with metrics like Churn Rate and “Happy” Cancellation Rate.