If you’ve come so far, we’re sure you’re somewhat aware of the benefits of Recurpay Subscriptions on your store. Often, when we speak to merchants, we realize that while an understanding of subscriptions exists, there’s often a gap in understanding the metrics e-commerce stores need to monitor and just how powerful Recurpay Subscriptions can be for them.
Whether you’re new to the game or a seasoned subscription user, we’re sure this deep dive will help you outline the metrics and their importance in a better light!
Why are we doing this?
It’s simple! At Recurpay, we don’t just help businesses manage their subscriptions.
We empower them with data-driven insights to scale efficiently.
Already sold on moving to Recurpay Subscriptions? Reach out to us at marketing@recurpay.com or book a demo today.
Let’s jump into it!
1. Reduce Your Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total cost a business has to expend to acquire every new person that could be a potential customer on their online store. These activities include marketing, sales, and advertising costs. Keeping this CAC lower is critical for e-commerce stores as a higher CAC can eat into profits and make scaling difficult. A close eye on this number can help with a better ROI and higher revenue.
According to Simplicity, Customer acquisition costs have increased by as much as 60% in the last five years. To bypass this rather costly metric, Recurpay can help you get the most out of your marketing spend. Our seamless integrations with Shopify help businesses create subscription plans that boost conversions and lower CAC with personalized and automated onboarding experiences.
Check out the subscription plans we’ve got waiting for you!
2. Maximize Your Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) is the total revenue one can expect from a customer over the duration of their relationship with your business. For e-commerce stores, keeping an eye on LTV helps get the most out of their marketing spend, improve retention strategies, and maximize profitability. A higher LTV is a strong indicator of customer loyalty which thereby helps reduce acquisition costs and plan for sustainable growth.
According to BigCommerce, the average for e-commerce brands is $168. Recurpay helps you build on LTV, the backbone of any successful subscription business. Through flexible billing, tailored subscription plans, automated loyalty incentives, predictive analytics, and churn-reduction strategies, we ensure every customer stays subscribed for longer, helping increase their overall value to your business.
Check out the unique features you will have access to with Recurpay Subscriptions!
3. Keep Churn Rate in Check
Churn rate, while it looks like a complicated word is quite simple. It’s the percentage of subscribers who cancel their subscriptions or never return to your store during a given period. For e-commerce stores, keeping this percentage lower is imperative for a steady revenue stream and long-term scale. A higher churn rate shows strong customer dissatisfaction, pricing issues, or lack of engagement with your store or strategies. Monitoring this helps build concrete retention strategies, improve customer experience, and maximize LTV.
In a Shopify article, it was outlined how a 5% monthly churn rate could be considered as average for subscription businesses. Whereas for single-purchase businesses like skin care or fashion, a 75% churn rate could be considered average.
It’s part and parcel of the e-commerce game. Subscribers will come and they will leave, however minimizing this churn is where Recurpay stands out. Our built-in dunning management system automatically retries failed payments and sends personalized reminders, reducing involuntary churn. With our deep churn analytics, we help businesses identify trends and address potential drop-offs.
Check out other features that can help boost your e-commerce store with Recurpay!
4. Scale Your Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is the predicted revenue a business can earn from subscriptions each month. For e-commerce stores, tracking MRR is critical as it helps provide a clearer picture of financial stability, growth trends, and customer retention. Monitoring MRR helps in optimizing pricing, reducing churn, and making informed long-term decisions.
In an article by Forbes, it was noted that e-commerce will grow from $4.4 trillion in 2023 to $6.8 trillion by 2028. Sustainable growth starts with predictable revenue. Recurpay enables e-commerce brands to track MRR in real-time, ensuring they can make data-driven decisions to optimize pricing strategies, launch retention campaigns, and introduce upsell opportunities.
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5. Optimize Your Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) measures the revenue generated per customer over a specific period. For e-commerce stores, tracking this helps assess customer value, refine pricing strategies, and optimize marketing efforts. A higher ARPU indicates stronger customer spending habits, leading to better profitability and long-term growth.
According to Statista, user penetration while at 42.4% in 2025, is expected to hit 49.1% by 2029 with the average revenue per user (ARPU) expected to amount to US$1.56k. Recurpay helps businesses increase ARPU by offering customized subscription tiers, bundling add-ons, and implementing smart discount strategies. With our advanced analytics, brands can pinpoint high-value customers and craft tailored retention strategies that boost long-term profitability.
Thinking of migrating to Recurpay? We’ve got you covered!
Recurpay is a complete ecosystem built to help e-commerce businesses scale with ease. Our platform offers seamless integrations, powerful automation, and advanced analytics, enabling brands to optimize their subscription models effortlessly.
From reducing churn with smart dunning management to boosting revenue through personalized subscriber insights, Recurpay empowers businesses to take full control of their recurring revenue.
Whether you’re launching a new subscription service or refining an existing one, our intuitive and cost-effective solution ensures a smooth, data-driven approach to growth.
Let’s make it happen! Book a Recurpay demo today.