Docs Platform metrics Active subscriptions

Active Subscriptions for Mantle

Understanding active subscriptions is valuable for gauging the health and success of your app. This metric helps you monitor how many users are actively paying for your product, providing insights that can guide your business strategies.

What is Active Subscriptions?

Active Subscriptions represent the number of installations where the merchant (the app user) has an active plan and their Shopify shop remains active (not shut down or frozen).

To calculate active subscriptions, you need to:

  1. Identify all current installations of your app.
  2. Filter out installations where the merchant’s plan is inactive.
  3. Further filter out installations linked to Shopify shops that are shut down or frozen.

The formula can be simplified as:

Active Subscriptions = Total Installations - Inactive Plans - Inactive Shopify Shop

Why tracking Active Subscriptions is important

Tracking Active Subscriptions is crucial because it provides a clear view of your product’s engagement and customer retention. Here are a few reasons why this metric is important:

  • User conversion: It indicates how many users find are opting to subscribe to your product, which is a direct measure of percieved value.
  • User retention: It indicates how many users find ongoing value in your product, which is a direct measure of engagement.
  • Revenue insights: Active subscriptions directly correlate with recurring revenue, giving you a snapshot of your financial health.
  • Product health: Monitoring active subscriptions helps in understanding the lifecycle of your customers.

Actions you can take with Active subscription data

Active Subscription data can guide several strategic actions:

  1. Improve conversion: Assess areas of the onboarding journey from pricing to subscription to find issues that are limiting conversion.
  2. Enhance user experience: Analyze the reasons behind inactive plans or frozen shops to identify areas for improvement in user experience or support.
  3. Targeted marketing: Use this data to create targeted campaigns aimed at re-engaging inactive users or upselling to active ones.
  4. Product development: Insights from active subscriptions can highlight which features are most valued, guiding future development efforts.
  5. Retention strategies: Implement retention strategies such as loyalty programs or personalized outreach to maintain or increase active subscriptions.

Integrating plan and daily active use data can provide deeper insights into user thinking. By understanding how often and in what ways active users engage with your product, combined with the level of service they’re subscribed to you can refine features and support to better meet their needs.

To get a comprehensive understanding of your product’s performance, consider tracking these related metrics:

  • Churn rate: The percentage of users who cancel their subscriptions over a given period. High churn can indicate issues with customer satisfaction.
  • Daily active users (DAU): The number of unique users who interact with your app on a daily basis. This helps gauge day-to-day engagement.
  • Customer lifetime value (CLTV): The projected revenue a customer will generate during their time with your product. This helps in understanding long-term value.
  • Monthly recurring revenue (MRR): The total revenue generated from active subscriptions each month. This is a key indicator of financial health.

By combining active subscription data with these metrics, you can develop a robust strategy to drive growth and optimize your software product’s performance.