One of the best things about subscription box marketing is that everything is trackable. That gives you a huge number of metrics that you can track, but which ones should you track?
This rundown will walk you through the metrics that will help you increase sales and revenue for your subscription box.
As with any metrics, you need to track them over time. SEO related metrics can go up and down from month to month so look for trends over 3 months or longer.
Website Traffic – It all starts with traffic to your website. The more people who come to your site, the more customers you can get. Hopefully, your marketing efforts are targeted so that you are attracting your ideal prospect.
We like to look at the number of users for the past three months with a comparative metric that shows the percentage of increase versus last month. Plus a full 12-month chart of the number of users to the site. We also look at page views with the monthly comparisons.
It’s also important to look at the sources of traffic and how they have changed over the past 12 months. Make sure you look at all of the sources, including direct, other and paid sources.
Keyword Rankings – How your website shows up in the search results is also indicative of how well your content is targeted to your ideal prospect. A good keyword ranking profile will have a wide variety of rankings at various positions.
Ideally, you should be tracking a list of targeted keywords and which pages of your site rank for them. The number can vary but we like to start with 100-200 targeted keywords.
You can also track the total number of keywords that your site is ranking for. This will show you that Google is seeing your site and continues to crawl and rank the pages in their search engine.
Key Pages Visited And The Paths They Took To Get There – As we dive a little deeper into how people use your website, you can use Google Analytics’ Behavior Flow report to see how people move through your site and where they go when they leave a page.
An interesting way to look at this report is to set the dimension to source/medium so you can see how the different sources of traffic move through the website. People coming from similar sources often behave similarly.
Exit Pages – If people are exiting from your product page that’s a different problem than people exiting from the checkout page. Tracking where people are leaving your website is a great way to identify problems that can range from poor product descriptions to confusing user experience.
Front End Customer Acquisition Marketing Costs – These will vary widely by channel. But if you’re doing ads on Google, Facebook or Instagram you should be tracking total ad spend, the number of clicks, click through rate, conversion rate and cost per conversion.
The metrics get a bit more challenging if you’re doing affiliate or influencer programs. But in the end, you need to identify how many sales and how much revenue you are getting from these sources.
If you are not tracking conversion metrics, you could make big mistakes by rolling out ad spending on sources that are not producing long term subscriptions. That will destroy your overall P&L very quickly.
Cost Per Conversion – One of the most important metrics for your subscription box marketing efforts. If people are clicking on your ads but not buying, and most will do this, your profit will be non-existent.
Cost per conversion is simple math, take the amount spent on channel divided by sales revenue generated by those channels. This is a good metric to evaluate the true value of a marketing channel. You can even use this to evaluate sales that came in via organic search.
Subscriber Lifetime Value – Lifetime value is the total amount of revenue generated by a subscriber. So if your average subscriber stays with you for 2 years and you charge $25 per month, that subscriber is worth $600. You can also use a net number by deducting the cost of the product and its fulfillment from the revenue.
If you find that your average subscriber stays with your service for two years, but subscribers who come in from Facebook ads stay for three years, it may make sense to spend more on Facebook ads or accept a higher cost per conversion for those subscribers.
If you have a strong referral program in place and those Facebook Ad subscribers also refer people more frequently you should also calculate those metrics into your evaluation.
Lifetime value should also be tracked by order source so that you are making good decisions for each channel.
Landing Page Metrics
If you have a subscription box or any kind of e-commerce company you should ALWAYS be testing landing pages. We have been doing this for over 20 years and are still sometimes surprised about what works best.
Landing page metrics are simple, conversions divided by visits. Higher is better.
You can and should test everything about your landing pages. Sometimes you’ll be shocked as to what can move the needle. If you have a decent volume of conversions, a small increase in your conversion rate can add to your bottom line in a big way. Plus, if you do regular testing you will be constantly learning about what works better for you and that will always contribute to the bottom line.
Conversion Attribution And Multi-Channel Funnels
Not everyone who comes to your site will buy on the first visit. Those people are the unicorns. Likely most people will come back to the site multiple times before they buy.
Someone may come to the site via email, then click on an ad, then google you and come back and buy. So even though the ad-driven visit wasn’t the first or the one that got the sale, there is some value in that ad spend so ideally, you’d like to attribute some of the revenue to the ad channel in order to get a fair evaluation of that channel.
Understanding the most popular channel paths also allows you to strategize ways to speed up the sale. For example, let’s say people are taking the path above frequently before they buy. Maybe you can test a different ad landing page or show that person a better offer when they click through on the email. You could even create a specific lead scoring system for those people that sends them an email after they take their first two steps.
The marketing test possibilities are endless but you have to know the data first. The Multi-Channel reports in Google Analytics can give you the data you need for this.
Geographic And Time Of Day Metrics
You may or may not see patterns in geographic or time of day metrics in terms of sales, but they’re good ones to be aware of and monitoring so that you can leverage any strengths or weaknesses.
You can use this data to inform your ad schedule. Where and when you run your ads could be focused on areas where you haven’t had much success and test a different approach or in some way personalize the ads themselves or your offer.
This data will help you come up with a bunch of great testing ideas.
There are many other metrics that you can track for your subscription box marketing efforts. Our deep experience, over 20 years, in award-winning subscription marketing and SEO can help if you have questions. Feel free to reach out to us at (973) 770-4668.