Subscription analytics solutions help companies track the efficiency of their subscription models. This type of software is used mostly by SaaS software providers that sell their products using a monthly subscription model (as opposed to the traditional system of perpetual licensing). While subscription models offer more flexibility to clients, vendors need to continuously motivate their customers to maintain their subscription. Subscription analytics software is used by sales teams to monitor the effectiveness of their sales activities and to identify new business opportunities. It can also be used by finance departments to analyze the revenues generated by new or existing customers. Finally, subscription analytics can be leveraged by investors to decide whether to invest in a software company.
Subscription analytics software is delivered as a standalone solution or as a part of subscription management software. Some subscription analytics solutions also include features or modules for revenue recognition.
To qualify for inclusion in the Subscription Analytics category, a product must:
Analyze information about different subscription models
Track the efficiency of customer incentives such as free trials
Deliver dashboards that provide real-time analysis of subscription data
Determine the impact of any changes to plans or products on the subscription revenue
Capture and segment subscription data using criteria such as geography or customer size
Identify the subscribers with the highest risk of canceling their subscription
Include reports, analytics, and KPIs such as monthly recurring revenue (MRR), customer lifetime value (CLTV), or customer acquisition cost (CAC)
