Part five · Running it · Chapter 14

THE SCORECARD

One page, every week. Each number with its denominator, and one alarm that tells you when a flow has quietly stopped.

A subscription program usually shows up in the weekly meeting as one line: subscription revenue. By the time that line moves, the cause is a month old. The scorecard below catches it in the week it happens.

NumberDefined asWhat it catches
Active subscribersAt the start of the week, with starts, reactivations, pauses and losses since last weekThe overall direction
Churn, by causeVoluntary and failed-payment losses over subscribers active at the start of the month, month to dateWhich leak is growing
First- and second-renewal survivalFor each of the last three start monthsWhether newer subscribers stay better or worse
First-attempt decline rateRenewal charges declined on the first try, over renewal charges attemptedA processor or card-updater problem
Recovery rateFailed renewals later paid, over failed renewals, for charges old enough to have finished retryingWhether retries and notices are working
Cancel attempts and savesBy reason and by the option takenA new reason appearing, an option that stopped working
Saves still active at 60 daysFor saves made two months ago, by optionSaves that only delayed the loss
Skips and cadence changesPer 100 active subscribersRising overstock, before it becomes churn
Disputed chargesChargebacks on subscription charges, per 1,000 chargesCustomers who didn’t expect the charge
Flow triggers per dayHow many times the failed-payment, pre-renewal and cancel flows firedA flow that stopped firing

A number without its denominator is a mood, not a measurement.

Two rules for the page

From my workFirst, no subscription revenue figure appears without total store revenue beside it. Subscription revenue can rise because the program is working, or because it’s absorbing orders that one-time buyers used to place at full price. Only the store total tells you which. Second, the flow-trigger count is the most boring line on the page and the one most likely to catch a problem nothing else will. A failed-payment flow that fires zero times in a week isn’t a good week. It’s a broken trigger, and nothing else on the page will tell you.

Reading it

Read churn by cause and by start month, never as one blended number; chapter 5 explains why. Expect the aggregate to rise for a month or two after any big acquisition push, as those subscribers reach their first renewals. When you change something, hold back a random group so the result doesn’t depend on the season or the mix. And re-read the free-text cancellation reasons every week. They’re the only thing here written by customers.

Do this

This is one chapter of The Standing Order, which is free and readable in full on a single page with no form in front of it.