5 reasons why Subscription Analytics is important for the Product Manager?
As a Product Manager, I was facing many challenges in analyzing different startups' metrics. I know that it may be hard to decide which tool to use so I want to list the reasons to use different tools and you may decide about the tool yourself.
In this article I want to touch on the exact subscription monetization strategy, I will write more about the other ones later.
1. What is your growth metric?
For some companies, it's revenue, for others - number of users' growth (not subscribers), subscription amount, and retention. So what is yours? I would say all are important, that's why I like to use dashboards to see all info at the same time. I would choose the tool which will show me the most important metrics at the same time. Example from https://www.appflow.ai/
2. Churn reduction
Subscription analytics can help identify the factors contributing to customer churn: cancellation, non-renewing subscriptions, and payment failures. It's important to analyze why your users are leaving you and then improve your services. Example from: https://qonversion.io/
3. Backlog prioritization
I am sure, every Product Manager is facing the same pain of prioritization discussion with the company's stakeholders. It's much easier to work not with emotions or wishes but with the exact stats.
You can analyze your users' behavior, do AB tests using analytics, and then have data to structure the priorities well. Speak numbers!
Example from https://adapty.io/
4. Pricing optimization
What is the right price for your product? How to understand whether will users churn or not after the price growth? Do A/B tests without the version updates, compare prices, and use the remote configuration functions for that.
Compare also with prices/plans dashboards. Example from https://recurly.com/ :
5. Analyzing end-users behavior
Subscription analytics provides valuable insights into customer behavior, preferences, and usage patterns. For example, in Revenuecat you can see the user's history of events happened to the exact user. You can check it here: https://www.revenuecat.com/
Examples are only brief however I would suggest choosing the tool, that will suit you the best and cover all 5 points together.
Cheers,
Tamara
