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.
• 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.
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:
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.
• 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.
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.
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.
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.
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.
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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I have known Charles Vincent Kauwasha for many long years now since we first met in Accident and Emergency department of Hutt Hospital Lower Hutt New Zealand, where he was an emergency nurse. I had a problem with my heart and very quickly learnt to trust him with my life! we got talking about our businesses and exchanged contact details. Charles has been a loyal friend and business contact here and on whatsapp etc ever since that time, even after he moved from New Zealand to Australia. Charles is a very honest, loyal and trustworthy person, both in business and as a friend. I highly recommend Charles as a safe person to know and do business with.
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A unique and profound CEO I have seen in our times, I have seen the calibre in Charles. Charles has a performing influence drive from his desires to do work in an extraordinary way. Charles is adeliver, you will not regret working on projects with him
I Studied with Vincent Kaluwasha during this programme. A highly skilled and knowledgeable individual. Passionate about Occupational Health and would suitably work in the is capacity anywhere in the world”.
JACOB JOSEPH SAKALA-NURSE CONSULTANT
Charles is a man with a great deal of integrity and takes pride in his work
I’ve known Charles for many years and every encounter has been a happy one….he has a wonderful attitude towards life. He is a man of integrity
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I have seen how Charles has evolved from nothing to setting up a real estate portfolio with determination -Jessica McDade He is a man of integrity and passion who leaves a stone unturned!
All the developers of D5 Creation have come from the disadvantaged part or group of the society. All have established themselves after a long and hard struggle in their life
Thanks to you Charles, we can be there when the worst happens to give people the emergency medical care they need – and rapid transport to hospital. Your support means that CareFlight can fly at a few minutes’ notice, to some of the most inhospitable places in this country. It means patients like Simon can be reached quickly with hospital-level emergency care at the scene – and in cases like Simon’s every minute counts.
On behalf of everyone at CareFlight, thank you for your generosity – and have a wonderful holiday season. Thank you so much
Dear CVK, Awesome, a huge thank you for your prompt response!!! I feel blessed to know you.I love your inspiring video and I have learnt a lot from your nicely arranged presentation. I can’t remember the question I paused to you myself but it feels like whatever it was I asked you has been effectively dealt with in your powerful video. By the way, I strongly feel you can make a good mentor of mine considering the massive education and experience you have acquired through the years. Let me know if you can do this for me because I firmly believe there is a purpose why God brings certain people into our lives which is to help us achieve our fullest potential and arrive at our God-given destiny. Remain blessed forevermore in Jesus mighty name, Amena!!! By the way, many thanks for your quick encouraging feedback and for the free book offer on how to attract people to my biz.Will study the book ASAP and I should be able to implement what I will learn and will see where that will take me. I am looking forward to a rewarding interaction between the two of us. Once again, thank you for your non-wavering support and encouragement you have rendered to me over the years. I thought you had given up on me and forgotten about me since I appeared to be wasting your time. I am still interested in salvaging my life and do something new and big because I am tired and sick of living a mediocre kind of life. Please help me if you can by God’s grace. Have a blessed day my Brotherman
Charles, right now, a lot of people in this country are saying, “Thank you.”Thank you for being there when they needed help most. Thank you for taking charge when their world was turning upside down. Thank you for giving them confidence, when they were afraid and needed life-saving help. As a CareFlight Support Crew Member, you are making such a difference for so many people. Your regular donations help save lives and keep families together. Patients like Thomas, who told us, “You made it possible for me to survive.”And Agnes, who said, “I’m very grateful a service like CareFlight exists.”Below are some more messages of thanks: Thanks from the patients you help. As we head into another year, we know there will be even more people who will call on our services. So, I’d like to add my heartfelt thanks to those of our patients, for your steadfast support. Together we are ensuring CareFlight is always there for people when they call for our help. Whether it’s intubating a patient at the scene of an accident, or ensuring a newborn is safe on a flight from a remote area to a major hospital for treatment, our patients cannot speak highly enough of the care they receive. Charles, that care is part of a chain that starts with people like you. These expressions of gratitude, from all over the country and from all walks of life, show you how much your support is valued – and how much it is needed, more than ever. We can’t do what we do without you.
If this year has taught us anything so far, it’s that none of us ever truly know what is around the corner.
That’s why I can’t thank you enough for your support that ensures we can continue to provide life-saving aeromedical care to Australians most in need.
Our CareFlight crews are in a unique position to understand what Australians have been going through. Every day, we care for people who have found their world shaken by a sudden accident or illness – coping with circumstances almost none expected to face when they woke up that morning.
People like Simon Bowman don’t like to rely on others for help. But one day, as he lay trapped inside his car after a terrible road accident, with suspected injuries to his spine and shoulder and a possible head trauma, Simon needed life-saving help desperately. CareFlight was there in a matter of minutes.
CareFlight’s rapid response helicopter service is so vital in situations like this. Our crew can be airborne in minutes and by the side of our patient, delivering hospital-level emergency care as fast as possible.
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Our mission is to deliver people the very best care. We’ve spearheaded international aeromedical innovations such as our stretcher bridge system and become the first civilian service to carry blood plasma to the scene of an accident.
The care, the state-of-the-art equipment, those voices which reassure patients that they are in the hands of skilled professionals they can trust – it’s all thanks to people like you.
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Your support for CareFlight is helping to save so many lives, like Simon’s.
Thank you so much.
HAPPY BIRTHDAY, CEO!! peacemaker, Shepherd, wise, intelligent, focused, hardworking, caring, loving, forgiving, Husband, Granddad and most importantly best Father Charles V. Kaluwasha. We’ve been truly blessed to have you as our mentor and protector. We thank God for keeping you alive and healthy. Today we celebrate your 60th, a blessed milestone! Next, we count down to your 100th BIRTHDAY. WE LOVE YOU and pray we have you as our father in the next life- @Kendy Kaluwasha
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