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Nataly
Nataly
July 05, 2024
11 min read

Keys to Choosing the Right Subscription App Revenue Analytics Tool

In this guide, we’re going to explore every aspect you should consider when choosing a subscription analytics tool for your app. Plus, we’ll look into some benefits of having one of these by your side.

11 min read
Keys to Choosing the Right Subscription App Revenue Analytics Tool

What does Subscription Revenue Analytics cover?

Subscription analytics refers to the process of analyzing data related to subscription-based services or products to gain insights into customer behavior, revenue generation, and overall business performance. 

Subscription analytics tools collect, process, and analyze data from various sources, such as:

  • Total number of subscriptions by days/weeks/months/years, 
  • Trial and subscription conversion rates, 
  • Retention cohorts, and 
  • Revenue streams.

Now onto the real question…


Why do you need a Subscription App Revenue Analytics tool?

Subscription analytics are critically important to any marketer or app manager who wants their app to succeed. Here are some reasons you should consider getting a subscription app revenue analytics tool for your app:

1. Makes personalization easy

Understanding how users interact with the subscription app or service is crucial for optimizing user experience and increasing retention. In fact, according to one study, 75% of Americans showed loyalty to personalized brands, compared to impersonal ones. 

Subscription analytics tools enable businesses to segment their subscriber base based on demographic, behavioral, and transactional data. Subscription analytics tools track user activities to identify patterns and trends that influence user retention and revenue generation.

2. You can analyze user behavior

Who wouldn’t like to know how their app’s user behaves? From what attracts and retains them to what makes them want to leave, a successful app developer will always have excellent insight into their users’ minds. 

A subscription app analytics tool provides invaluable insights into user behavior, conversion metrics, and revenue generation sources. With this data, you can make informed decisions to optimize your app's performance, enhance user experience, and increase revenue streams.

For example, you have a subscription-based meditation app. You can analyze user behavior to find that users who meditate for longer sessions tend to have higher retention rates and are more likely to convert to premium subscribers.

3. Helps in churn management 

Whether it be user or revenue, churn rates are critical KPIs for any business out there. After all, it’s the percentage of revenue or users you’ve lost over a period of time, which can become an irrecoverable loss unless treated on time. 

And so, understanding user retention and churn rates is vital for the long-term success of a subscription app. Analytics tools offer detailed insights into user retention trends, allowing businesses to identify churn triggers and implement strategies to improve customer retention, such as targeted marketing campaigns or product improvements.

4. Tracks revenue

One of the main focuses of a subscription analytics tool is to track revenue. And if you’re looking to maximize your revenue, a subscription analytics tool can greatly help you with that! 

This tool can bring you a deeper understanding of your app’s revenue drivers, pricing strategies, and user segmentation. With this understanding, you can analyze your subscription revenue streams, identify high-value customers, and optimize your app’s price model to increase profits. 

5. Monitors and tracks performance

Subscription analytics tools monitor key performance indicators (KPIs) such as customer lifetime value (CLV), conversion rates, average revenue per user (ARPU), and MRR (monthly recurring revenue)

These metrics provide insights into the overall health of the subscription business and help businesses track progress toward their growth and revenue goals.


Key factors to consider when choosing a subscription app revenue analytics tool

Having the right subscription app revenue analytics tool with you can make all the difference in the world. But what factors should be on your mind? Here are 5 things to consider when picking your analytics tool:

1. Data accuracy

Accurate data forms the bedrock of informed decision-making. Without reliable data, businesses may make flawed judgments, follow inefficient strategies, or miss the opportunity of a lifetime. 

Hence, you should ensure your subscription analytics tool provides precise and real-time data for reporting and tracking. This will allow you to promptly identify areas for improvement or capitalize on emerging opportunities, ultimately driving revenue growth and profitability.

2. Customization and flexibility

Customizable dashboards and reports tailored to specific business needs are essential for gaining actionable insights from revenue analytics. Customization enhances decision-making and improves overall efficiency by allowing users to focus on the metrics that matter most to them. 

Additionally, a flexible tool that can adapt to changing business requirements ensures long-term relevance and usability. As businesses evolve, their analytics needs may change, and a flexible tool can accommodate these changes without requiring significant overhaul or investment.

Lastly, the right subscription app revenue analytics tool should also provide you with granular insights to discover hidden revenue drivers with an impressive range of data segmentation! With an enhanced filtration system, this tool can grow flexibly with your app. 

3. Integration capabilities

An app isn’t a single-platform game. You’re integrating with multiple frameworks, platforms, and tools to streamline and optimize your app. And so, you should choose an app that seamlessly integrates with other tools and platforms - no exceptions!

A subscription analytics tool can provide a holistic view of performance and customer interactions by integrating revenue analytics with other business systems such as MMP or marketing automation platforms. 

This integration facilitates data-driven decision-making across the organization, efficient resource allocation, and aligned strategy execution. 

4. Pricing and scalability

Costs are through the roof, regardless of what your budget is. And when it comes to tracking an app’s analytics, you don’t want to spend too little or too much. Your subscription app revenue analytics tool should offer transparent pricing and flexible payment options, so there aren’t any unexpected costs that shake your budget. 

Furthermore, you should also consider the app’s ability to scale as the app grows in the long run. Consider if this tool can handle increasing data volumes, complexities, and KPIs without compromising performance in the future. 

5. Range of metrics and events tracked

Revenue is more than just the sales you make and your subscription app revenue analytics app should understand this. To analyze revenue accurately, the tool should be robust enough to offer multiple important metrics reliably. 

Pick a subscription analytics tool that offers the following KPIs tracking abilities for your app:

  • Monthly recurring revenue (MRR)
  • Gross revenue
  • Refund rate
  • Sales 
  • Proceeds 
  • Average revenue per user (ARPU)
  • Users Lifetime value (LTV)
  • New regular subscriptions 

What is the best subscription app revenue analytics tool?

Sure, there are many subscription analytics tools out there for you to scour through. But when it comes to the final pick, there’s no better analytics tool than Apphud. 

Apphud has set itself apart with precise data accuracy, customizable in-app messaging, and automation ability. 

You can also set up to 5 paywall A/B tests with Apphud and review advanced revenue analytics and scale as your business grows. 

Our clients' success stories tell for us. 


Conclusion

In navigating the complex labyrinth of app development and marketing, the significance of a subscription app revenue analytics tool cannot be overstated. It serves as a beacon, shedding light valuable insights into user behavior, revenue generation, and overall business performance.

From facilitating personalized user experiences to aiding in churn management and revenue optimization, there are many benefits of a good analytics tool. However, choosing the right one is crucial, and several key factors must be considered.

In this blog, we discovered the 5 key factors you should scrutinize when making your pick. And if you want the best, Apphud is ready to take your app to the next level!

Nataly
Nataly
Head of Marketing at Apphud
7+ years in product marketing. Nataly is responsible for marketing strategy development and execution. Committed adherent of the agile methodology.

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