KPIs for Subscription Box Businesses
These are the KPIs a subscription box or recurring-delivery business tracks for retention, margin per box and acquisition cost. Churn sets how long a customer's revenue lasts.
The KPIs to track
Customer churn rate is the percentage of customers who cancel during a period, out of those you had at the start.
Formula and SQL query on the Customer Churn Rate page.
Customer lifetime value estimates the total gross profit a customer brings before they leave.
Formula and SQL query on the Customer Lifetime Value (LTV) page.
Customer Acquisition Cost (CAC)
Customer acquisition cost is the average spend needed to win one new customer, including marketing and sales costs.
Formula and SQL query on the Customer Acquisition Cost (CAC) page.
Average Revenue per User (ARPU)
ARPU is the average recurring revenue per active customer or user in a period.
Formula and SQL query on the Average Revenue per User (ARPU) page.
The LTV to CAC ratio compares what a customer is worth over their lifetime with what it costs to acquire them.
Formula and SQL query on the LTV to CAC Ratio page.
Skip rate
Scheduled deliveries skipped by subscribers divided by scheduled deliveries.
Fulfilment cost per box
Packing, postage and handling cost divided by the number of boxes shipped.
Gross margin per box
Revenue per box minus product, packaging and fulfilment cost, divided by revenue.
Where the data usually lives
A subscription billing platform, the shop or order system, fulfilment and carrier invoices, and ad accounts.
Measurement mistakes to avoid
- Paused subscriptions need a rule for churn and for revenue.
- Discounted first boxes lower early revenue per subscriber; compare cohorts, not averages.
- Carrier costs vary with weight and zone; use actual postage, not a flat estimate.
Questions to ask your data
You can type these as plain questions. SchemaChat turns each one into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. Check that the result matches how your business defines each KPI.
- What is monthly churn by subscription plan?
- How does lifetime value compare with acquisition cost by channel?
- What share of boxes were skipped last month?
- What is gross margin per box after fulfilment?