Utilizing proprietary data available to us as Shopify's largest subscription platform, ReCharge compiled an in-depth subscription industry report. Visit our landing page to download the report and dig into the insights, available now.
About the report
In September 2019 at ChargeX, ReCharge presented proprietary data on the state of physical subscription commerce. This data allowed merchants in the physical subscription space to benchmark their business for the first time against real data.
Since then, physical subscription commerce has only continued to grow and change — and so we’re back with a new report. This report provides a full picture of the state of physical subscription commerce; how it’s changing, where it’s thriving, and where it will continue to go.
Compare your business with industry benchmarks including plan length by type, subscription schedules by vertical, average order value, and more.
Comparing reporting metrics
The State of Physical Subscription Commerce contains a number of industry data trends, but the real value for merchants is comparing the benchmarks against their own data. With the recently released ReCharge Analytics, you can access the same data and compare your store's average to the report.
The State of Physical Subscription Commerce Report uses a number of industry acronyms, here is a quick refresher on the frequently used terms.
Average Order Value - the average amount spent by a subscriber during checkout.
The rate of customers who cancel their subscriptions. Usually expressed in a percentage, the number of customers canceled over your store's total number of customers in a time frame.
Monthly Recurring Revenue - the total number of income generated from subscription sales over a month period.
Life Time Value - the average amount a subscriber spends over the course of their subscription before churning.
As of April 2020, we're defining lifetime value as the total customer value, which is calculated based on occurrences in the past for customers who have already exited the platform. Our methodology matches Shopify's reporting for the total customer value metric. This means we are able to provide continuity in reporting across the two platforms. In the future, we plan to refine this approach to include other calculations. Stay tuned as we continue to update our analytics platform.
Skimming through data trends can be useful, but the real value to your bottom line starts when you put your newfound insights to use. Here are a few articles to help you get started.
- Dr. Axe Case Study - Increase lifetime value by building a stellar UI/UX in the Customer Portal using the Theme Engine.
- Why Investing In Your Customer Portal Can Improve Retention - Decrease voluntary churn by using the skip and swap features as well as implementing retention strategies.
- How & Why You Need To Improve LTV:CAC - Increase average order value of subscribers by implementing One-Time Products into the Customer Portal.
- How Reducing Customer Churn Impacts LTV and CAC - Reduce involuntary churn with apps that integrate with ReCharge.