6 Key Metrics for a Subscription Business
6 Key Metrics for a Subscription Business
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When COVID-19 turned the world on its head, companies everywhere started looking at alternative business models. And even though many companies have since re-opened, customers are still looking for new ways to consume products and services: watching movies online, having take-out meals delivered, or working out at home instead of at the gym.

A subscription, or recurring revenue model, can offer a great solution, helping companies to bring in revenue and while giving customers the options they're demanding. Even B2B companies are moving in this direction; for example, some airline manufacturers are moving from selling jet engines to leasing them as a service that includes maintenance and repairs.

A traditional business model, with a one-time sale or a perpetual license, may use metrics such as revenue growth, customer acquisition costs, manufacturing costs, and gross profit margins. But the subscription business model requires a different set of metrics to track and monitor the health of the business. Let's review 6 key metrics to consider for a successful subscription business.

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