Example KPIs for organizations with subscription-based systems where customers purchase goods and services on a monthly installment basis
Today, R&D BI Co., Ltd. is introducing sample KPIs for organizations that offer subscription-based services and purchase goods and services with monthly installment payments, such as companies providing cloud server services, companies offering monthly subscription software, loan companies, installment purchase companies, fitness businesses, and co-working spaces
Average Monthly Recurring Revenue per account: Avg. MRR per account
MRR YTD / Total Accounts YTD is the formula for calculating
average revenue per account. It's used to compare monthly figures to see how revenue has increased or decreased each month.
Trial to win conv. Rate or prospect customer to buyer
The ratio of people interested in a product/service to those who become actual buyers
= ((Number of buyers) / (Number of interested individuals)) x 100.
For example, in the software business, a trial version of software is available, and the number of people who tried it and became actual customers is significant. Knowing this number helps in developing strategies to increase this ratio. Generally, the outcome of a strategy's implementation, whether it increases or decreases, can be determined by this number.
Besides the software industry, other businesses that offer trial versions of their products and services can also benefit from this data. For example, businesses that distribute products for trial and collect data from those who receive them can analyze this data. Later, if they can request customer data when they make a purchase, they can further analyze it
Trial to win conv. Rate or prospect customer to buyer
The ratio of people interested in a product/service to those who become actual buyers
= ((Number of buyers) / (Number of interested individuals)) x 100.
For example, in the software business, a trial version of software is available, and the number of people who tried it and became actual customers is significant. Knowing this number helps in developing strategies to increase this ratio. Generally, the outcome of a strategy's implementation, whether it increases or decreases, can be determined by this number.
Besides the software industry, other businesses that offer trial versions of their products and services can also benefit from this data. For example, businesses that distribute products for trial and collect data from those who receive them can analyze this data. Later, if they can request customer data when they make a purchase, they can further analyze it
Account Retention Rate (based on the number of customers)
The account retention rate, or customer turnover rate
, is calculated as follows:
Number of customers at the beginning of the month – Number of customers who canceled their service during that month + Number of new customers who signed up during that month.
For example, if the company had 100 customers at the beginning of the month, and 5 customers canceled their service during the month, and 10 new customers signed up,
then
the Account Retention Rate = 100 - 5 + 10 = 95%.
Seats/Users Retention Rate (based on the number of users)
This is used for organizations that charge based on the number of users, often in the telecommunications/software industries that charge licensing fees or service fees based on the number of users. For example, some organizations may purchase email packages from a company and pay based on the number of users each month, requiring them to increase or decrease the number of users as needed
Seats/Users Retention Rate = (Number of users active at the beginning of the month – Number of users who canceled their service + Number of new users who signed up) / Number of users active at the beginning of the month. This is then calculated as a percentage for easier comparison with other months.
For example, if the number of users active at the beginning of the month is 150,
the number of users who canceled their service is 15, and
the number of new users who signed up is 20, then the result is
150 – 15 + 20 = 155. The percentage increase or decrease is calculated as 155/150 x 100 = 103.33%.
KPI introduction by: Nuchanat Rongrong, R&D BI Co., Ltd
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