Understanding Subscription Insights - SureCart

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Understanding Subscription Insights

In this article, we are going to cover how the subscription metrics are calculated in SureCart so you get a better understanding of the insights.

Let’s get started.

Subscription Metrics Terms Explanation

Let’s talk about some numbers that are super important for subscription businesses.

These metrics are your business’s vital signs – they tell you how healthy it is and how it’s doing financially. So, let’s dive in and get to know them a bit better.

Total Subscription

This metric represents the total number of active subscriptions that your business currently has. It includes both new and existing subscriptions.

New Subscription

New subscriptions are the number of new subscriptions that were created during a specific period (e.g., This month).

New Trials

New trials represent the number of subscriptions that are in a trial period within a selected time frame.

MRR (Monthly Recurring Revenue)

MRR is the total revenue your business generates from subscription fees on a monthly basis. It includes the sum of all subscription plan payments made by your customers during that month. MRR is a fundamental metric for understanding your subscription business’s financial health.

MRR Lost

MRR lost represents the amount of monthly recurring revenue that your business has lost during a specific period due to customer cancellations, downgrades, or churn. Reducing this metric is essential for maintaining revenue stability and growth.

Outstanding Installments

Outstanding installments indicate the total value of installment payments that customers have yet to pay for their installments. This metric is especially relevant if you offer installment plans and want to plan for the upcoming months.

These metrics provide valuable insights into the performance and health of your business. By monitoring and analyzing them regularly, you can make informed decisions to optimize your subscription offerings, improve customer retention, and drive revenue growth.

How MRR is Calculated in SureCart

If you try to calculate the MRR data manually and realize that your calculations do not match the insights, please! Don’t freak out, there is a “magic” number we use to calculate the MRR in SureCart.

Let’s understand this with an example.

Consider you are in the month of September which has 30 days in a month, so you might try to calculate the MRR by summing up all active subscriptions in 30 days.

But that’s NOT how we calculate MRR in SureCart. Here’s how we calculate MRR:

For monthly subscriptions,

MRR = SUM (Number of active monthly subscriptions x Cost per monthly subscription)
SUM is The total amount resulting from the addition of two or more numbers, amounts, or items.

For annual subscriptions,

MRR = SUM (Number of active annual subscriptions ÷ 12)

For daily subscriptions,

MRR = SUM (Number of active daily subscriptions x 30.436875)

In the case of daily subscriptions, we use a mean value for the number of days in the month which is 30.436875. 

For weekly subscriptions,

MRR = SUM (Number of active weekly subscriptions x 4.348125)

In the case of weekly subscriptions, we use a mean value for the number of weeks in a month which is 4.348125. 

If you’re curious about the origins of these specific numbers, the explanation is straightforward. They represent the average number of days and weeks in a month, taking into account a time span of 100 years, including leap years.

Now, let’s understand more with an example.

Imagine you have 3 subscriptions that cost $30/month, 2 subscription that costs $120/year, and 5 subscription that cost $2/day.

To calculate your Monthly Recurring Revenue (MRR) based on the provided subscription costs, you can use the following formula:

MRR = SUM (SUM monthly subscriptions + SUM yearly subscriptions +  SUM daily subscriptions)

Let’s plug in the values we have:

MRR = (3 x $30/month) + (2 x $120/year / 12) + (2 * $2/day x 30.436875 days/month)

MRR = $231.75/month

So, your Monthly Recurring Revenue (MRR) is MRR = $231.75/month.

Live Mode and Test Mode

Our Analytics Metrics are categorized into two modes: Live Mode and Test Mode, ensuring that you have the most relevant data for your specific needs.

By default, it’s set to Live Mode, but you can effortlessly switch to Test Mode with a simple click. Here’s how:

Please Note: Although Installments are a unique form of subscription, referred to as finite subscriptions, they are counted separately.

They are not combined with the Total Subscription, MRR, etc. You can view them in the “Outstanding Installments” metrics, which is the last item on the graphic.

Quick Filter

In your Analytics, you’ll find a one-click filter for some of the most commonly used date ranges. It’s simple and requires little explanation. If you want to view metrics for the current week, just click, and there you have it – instant access.

Subscriptions Table

Towards the end of the page, you’ll find a table listing all subscriptions, ordered with the most recent at the top. You can easily filter these subscriptions with a single click, choosing from options such as All, Active, Trialing, Past Due, and Canceled.

That’s it! With these tools, you can navigate the subscription landscape more effectively and make data-driven decisions for your business’s success.

Hope this helps!

But if you’re facing a different situation or need further assistance, please don’t hesitate to reach out to us, and we’ll be happy to help you.

Frequently Asked Questions

I sell annual subscriptions, How are the metrics calculated?

Our metrics are calculated on a monthly basis, primarily to display the Monthly Recurring Revenue (MRR), which is the standard in the industry.

For example, if your annual subscription costs $300, the MRR will be $25. This calculation is achieved by dividing the annual subscription amount by 12, resulting in 300/12 = 25.

Are installments included in Total Subscriptions and MRR metrics?

No, installments are counted separately and are not combined with Total Subscriptions or MRR. You can find metrics related to installments under “Outstanding Installments.”

How can businesses use MRR Lost data to reduce churn and increase revenue?
Understanding MRR Lost helps businesses pinpoint areas where they are losing revenue. By addressing the root causes, such as improving customer support or product features, they can reduce churn and boost revenue.

What are some potential red flags in subscription metrics that businesses should watch out for?
Red flags can include high churn rates, stagnant or declining MRR, and unexpected fluctuations in subscription numbers. Identifying and addressing these issues promptly is crucial for business health.

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