Best SaaS Management Software

SaaS management is the business practice of proactively monitoring and managing the purchasing, onboarding, licensing, renewals, and off-boarding of all the software-as-a-service (SaaS) applications within a company’s technology portfolio.

Why Subscription Growth Metrics Are Important in the Best Online Subscription Management Software

Subscription management software is designed to help companies manage their subscriptions, recurring billing, customer contacts and pricing plans, subscription plans, invoicing and billing, and revenue growth. All in all, the subscription management system is essential for companies who are offering their products and services on a recurring basis. The rise of online businesses has also increased the popularity of this software where every company is looking for the best online subscription management software in the market.

But before, you research and gauge your options for investing in the best online subscription management software for your business; you must understand the tools and features you should be looking for. Subscription growth metrics are essential as they help to measure SaaS metrics. As subscription businesses rely on recurring revenue, it is crucial that these key metrics are regulated because they are closely related to revenue growth and how much return on investment your business is making for your subscription plans.

What are subscription growth metrics?

Subscription metrics or growth metrics are the measurements which help a business develop and enrich long term customer relationships and act as key performance indicators. These indicators assist in visualizing predictable cash flow and revenue growth. For every business, different metrics are focused on, and the best online subscription management software will ensure that you are provided with real-time updates on these metrics. Just like SubscriptionFlow, which has a reporting dashboard on which you can view churn rate, recurring revenue for annual and monthly, as well as other metrics all in one place. When you are looking for the best online subscription management software for your business, make sure that you can measure your growth beyond the conversion rates.

Monthly recurring revenue

One of the most important metrics is MRR or monthly recurring revenue which measures the sum of all the recurring revenue generated in one month. This metric will also help you predict how much revenue can you expect in one month, and it takes all credits and refunds into account. It will also help you measure your growth trajectory on a long term basis, as well as how much churn is generated in the previous month and how much has this rate dropped in this month. MRR will also provide you with insight into revenue generated from upgrades, new subscriptions, reactivated subscriptions, revenue lost from churn and downgrades of subscription plans.

Subscription churn

Now this subscription metric is most sought after, and all businesses are venturing into track subscription churn regardless of their products. Churn rate can be defined as the number of subscribers who have cancelled their subscriptions, or their plans have been cancelled due to failed payments. This metric indicates how stable your customer retention is. Moreover, you can also gauge involuntary and voluntary churn and tackle them separately. Voluntary churn takes place when your clients actively stop using their subscription plans or cancel them, whereas, involuntary churn is when subscribers lose their subscription to drop their plans due to failed payment. For churn, SubscriptionFlow offers smart dunning which will send automated email reminders in case customer payments fail after repeated retries from the payment gateway. While choosing the best online subscription management software for your business, you also need to make sure that it offers tools to improve areas highlighted from these metrics.

The average revenue per customer

This metric gauges how much revenue is generated from every customer. This metric will give you an insight into how satisfied your customers are with your provided products and subscription plans. Because when your customers are not upgrading or leaving after the trial period is over, it means that your investments in the customer is either low or needs a new strategy so your customer churn can be reduced. To deliver customer satisfaction as well as improve your return on investment, it is essential that these metrics are measured. Only then a platform can be called the best online subscription management software.