When seemingly everyone and their dog (1) is sharing advice online, it can be hard to know who to trust.
Our approach has always been to lead with our data instead of our opinions.
This year, we've shared some of those data-driven insights with the recurring revenue community on Quora. We wanted to post some of our most viewed answers that can help you perfect your strategy and better understand your business.
You can jump to the questions relevant to you below or check out the rest of our answers to 50+ questions from the subscription community on Quora.
We'll kick things off with a topic that generated some significant back and forth: the value of daily metrics emails.
It’s extremely important to have an actual daily email.
Full disclosure — we’re committed to the daily email in our free subscription analytics tool ProfitWell Metrics. We set it up to deliver a daily email that gives a good overview of what’s going on without overwhelming everyone connected to the metrics.
Evidence suggests connecting your entire team and being aware of how the company is doing can actually contribute to growth.
In the study below, we looked at 60+ companies and found a correlation between those teams who were connected to their company’s financials and growth. The full explanation is here, but the crux of this comes down to “you can only fix/contribute if you know what’s wrong or what’s working.”
In looking at what to actually put in the daily email/dashboard, you have a lot of options. It’s largely going to depend on what stage you’re in and which metric you’re trying to optimize.
Based on our experience seeing inside thousands of companies, I recommend setting a compass metric based on the sole piece of the business you’re trying to optimize and then including the metrics that contribute to that compass metric.
For most companies, that’s some sort of growth mechanism, such a MoM revenue growth. The factors that contribute to growth in a subscription companies are things like Monthly Recurring Revenue (MRR), MRR Churn, etc.
What’s interesting is these emails can get very complicated, particularly because there are endless amounts of metrics that you could theoretically list. As such, I’d focus on that Compass Metric and then the secondary level metrics that contribute to that metric, but then allow for a link into your metrics dashboard.
Long story short, it really depends on what stage you are, but here’s a good recap of the framework:
1. Keep it daily and send it to your entire team
2. Break everything down to one metric, the Compass metric
3. Add in the next order metrics that influence the Compass metric
4. Allow readers/users to click through the email if they want to explore the minutia
5. Iterate - don’t overthink it too much. As you evolve, your needs will evolve.