Customer Retention Rate . Not all customers who sign up and use your business’s products for a long time are customers. This metric measures the number of customers who stay with your business and use your products for a certain period of time . It is given as a percentage of the total number of customers. Here’s how to calculate the metric.
CRR
Customer Acquisition Cost . This describes the resources you use to convert a lead into a customer for your ecommerce products. The expenses you incur to nurture the lead through the buyer’s journey and convert them into a customer. This is how you can calculate your customer acquisition cost metric.
CAC
Average Revenue Per Customer . If you offer products at different price points, it can be difficult to know exactly what a customer is purchasing. Divide MRR/number of customers to find this metric .
Annual Recurring Revenue . This is the revenue your italy whatsapp resource brand generates after one year of selling your products. With this metric, you can estimate market consumption of your products and then adjust to ensure a consistent increase in revenue. For this metric, you divide the total revenue by the number of years the customer has been using the business’s products on an ongoing basis.
In the ever-changing landscape of the e-commerce industry, brands need to be flexible and embrace new and latest trends to serve customers well and generate more business revenue. If you haven’t started a subscription model for your e-commerce, it’s essential to start one.
Choose the best subscription model, run it, and test it, and track the key metrics mentioned in this article. Remember that customer satisfaction is your primary goal and provide the best experience to your customers, build a loyal customer base, and retain customers for a long time while generating recurring revenue.