How do you track your company’s progress?

How do you track your company’s progress?

How do you track your company’s progress? Here are Mandy’s Top 7 Key Performance Indicators (KPIs).

It’s possible to make money running a membership site. We own and operate one, and we adore it.

But how can you track your company’s progress? Subscribers? Traffic? Churn?

Mandy from Paid Membership PRO has established the KPIs to provide you with the most helpful information for optimising your membership site.

Running a membership site can be immensely fulfilling, from the personal gratification that comes with sharing your knowledge and experience to building a community of like-minded people who share your aims – not to mention the independence and financial security that it can bring to your life.

However, it’s easy to get caught up in the enthusiasm and neglect to assess whether your efforts yield actual results.

Measuring the long-term performance of your membership site may help you make better decisions in all areas of your business, from marketing to site content, but how do you do it?

It all starts with analytics, and KPIs (Key Performance Indicators) can tell you whether or not your membership site is performing successfully.
Please continue reading to learn about the KPIs you should be tracking right now and how to improve them to help your membership business grow.

Here’s what we’ll talk about:

• Key Performance Indicators (KPIs) for Membership Sites

o Visitor Numbers

o Rate of Conversion

Customer Lifetime Value (CLV) is a measure of how valuable a customer is (CLV)

o Turnover Rate

· Recurring Revenue monthly (MRR)

o Cost of Recruiting New Members

o Membership Participation

• KPIs are useful tools, but you are the one who makes the decisions.

Key Performance Indicators (KPIs) for Membership Sites

Because the membership business model is long-term, the KPIs you should track frequently indicate monthly or year averages and trends.

These criteria, among other things, inform your decision-making, provide a view of performance changes over time, and provide evidence of progress towards specific targets.

Here are a few questions you should be looking into:

• Do you have a membership programme that attracts new members?

• What are the origins of your members?

• What type of material works best for your target market?

• How effective are your landing pages and lead magnets?

• How much money do you make per month (or year)?

• Do you think you’re overspending?

• What is your investment’s return on investment?

• Do members intend to stay for the long haul?

• Do you have a membership site that keeps your members interested?

Here are the most useful membership site KPIs to measure in light of these questions:

1. Increased Website Traffic

Understanding where your website visitors come from, what brings them to your site, and how they act once they’re there is critical to determining whether your marketing plan is effective.

Google Analytics, for example, may provide you with a wealth of free traffic data, including traffic sources, demographics, page views, and more.

You may also use goal-setting and pattern-finding to help you develop your content strategy and target the correct audience.

Here are a few more particular traffic KPI examples:

• The bounce rate is the percentage of people who leave a website without returning. What percentage of your website’s visitors leave after only looking at one page?

• Unique Site visitors. How many new visits does your website get each day? This is the total number of unique IP addresses that have visited your site in a certain time frame.

• First-time visits vs. repeat visitors. How many people have come back to your site several times? Compare the number of unique IP addresses to the number of unique IP addresses that previously visited your site.

• The best landing pages. Which of your landing pages has the most visitors? These are the pages that have received the most page views.

• The number of pages visited per session. Divide the total number of sessions by the number of page views. On average, how many pages on your site do visitors look at?

• The average amount of time spent on the job. On average, how long do visitors stay on your website? For a certain period, divide the total duration of all sessions (in seconds) by the total number of sessions.

2. Rate of Conversion

After you’ve figured out how many people are visiting your site and what they’re doing there, you’ll want to see if they’re taking the actions you want them to take.

This can include items such as:

• subscribing to your newsletter or mailing list

• by obtaining a lead magnet; or

• registering for a free or paid membership.

The rate at which your site visitors complete these tasks and become leads (or customers) in your sales or marketing funnel is known as the conversion rate.

Google Analytics goal tracking tools can help you measure and analyse various conversion rates.

For membership sites, metrics like free trial conversion – or the percentage of people who sign up for free trial membership and then upgrade to a premium membership – are useful.

You can determine any type of Conversion Rate by dividing the total number of users in a given time period by the number of users who completed a specified action.

Rate of Conversion =

total number of users x number of people who completed the desired action

Simply set a time frame (usually one month) and divide the total number of users who became paying members by the total number of users, for example, to calculate your free trial conversion rate.

3. The lifetime worth of a customer (CLV)

It’s critical to consider Customer Lifetime Value when evaluating your membership site investment (CLV) return. This tells you how much your members spend on average on your membership.

Let’s say your membership price is $20 per month. Your average Customer Lifetime Value will be $240 ($20 x 12 months) if your members tend to stay for a year.

CLV (Customer Lifetime Value) =

a membership fee multiplied by the average number of months a member stays

Take into account any additional items, services, upsells, or annual subscriptions that you may offer.

Consider using the average spend (for the same time period) in your estimate if your members frequently purchase upsells like 1-to-1 coaching in addition to their membership memberships.

4. Turnover Rate

Cancellations are a regular part of the member progression process, especially if your material is meant to help your members attain a specific goal or competency level (as is often the case with digital courses, for example).

However, knowing your churn rate – or how many members you lose on a regular basis – is an important metric to keep track of.

Churn rate is usually calculated every month and is determined as follows:

Rate of churn =

total number of members minus the number of members who have left

Churn rate should not be disregarded because it is normally considerably less expensive to keep a member than to acquire a new one.

You should strive for a monthly churn rate of 5% or less, but this number can be slightly higher if your users tend to cancel their memberships as they advance through your material.

5. Recurring Revenue on a Monthly Basis (MRR)

Monthly Recurring Revenue (MRR), which displays how much revenue your membership site generates monthly, is one of the more obvious KPIs you should be tracking.

MRR (Monthly Recurring Revenue) =

average monthly revenue per member X amount of members per month

If you want to calculate this over a year – Annual Recurring Revenue (ARR) – simply multiply your monthly members by 12 and your average revenue per member by 12.

Alternatively, sum up your total number of members at the end of the year.

Your MRR should ideally increase with time, especially if you’re just getting started. This can signal that you’re gaining more members, but it can also mean that your current members are upgrading, so it’s vital to distinguish between the two when determining whether or not you’re hitting your member acquisition goals.

What happens if your MRR falls? This can be a negative indicator, but make sure you distinguish between downgrades and lost members before making this judgement.

It’s probably time to make a change if your MRR has remained unchanged for several months.

6. Cost of Recruiting New Members

Member Acquisition Cost is another significant factor to consider when calculating the return on your investment. This KPI shows you how much money you spend on average to attract each new member who joins your club.

To calculate, divide the entire amount of money spent on marketing activities over a specific time period by the number of new members you’ve obtained during that time period:

Cost of acquiring a new member =

number of new members x total marketing expenditures

The cost of member acquisition impacts your whole marketing budget, so knowing just how much you’re spending on your members is critical.

7. Participation of members

Member engagement is an often ignored aspect of having a successful membership site. Getting your members to return to your website and engage with your material frequently is an important component of maintaining a successful membership business.

In reality, this is how most membership businesses operate.

All other KPIs, especially your Member Lifetime Value and Monthly Recurring Revenue, are affected by how engaged your members are.

What are some of the engagement characteristics worth looking into?

• The number of people who log in. How often do your members log in to your website?

• The site’s activity. When your members visit your website, how engaged are they? You may use page views to get a general notion of which pages are the most popular, but heat mapping tools like Crazy Egg or Hotjar can help you track where parts of your site are getting the most time and attention.

• Rates of completion. How many of your members have finished your courses or other progressive content?

• Interaction within the community. In what ways do your members interact with one another in forums or other forms of communication?

Paid Memberships Pro provides custom ways for tracking user activity in Google Analytics, allowing you to dig into member-specific statistics. You can also use Intercom to re-engage members who haven’t signed in a while or haven’t completed specified material.

Identifying member interaction patterns provides you with a lot of data that you can use to create new content, improve your website, and sell your membership.

KPIs are useful tools, but you are the one who makes the decisions.

While these indicators are beneficial to all membership site owners, your precise objectives will be determined by your target audience and the type of content you create.

You may notice a larger churn rate if you sell digital courses than if you sell other sorts of memberships, and hobby organisation websites may have higher levels of online engagement than membership sites that offer downloadable content that members utilise offline.

This article has outlined the key performance indicators (KPIs) that will provide you with the most useful data for enhancing your membership site. Now is the time to put the information to use and grow your membership business.
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