Dose #137: How to Double Subscription Revenue in 2025 with These 3 Key Metrics

Andriy here with your weekly Subscription Prescription 💊

What metrics are you focusing on for subscription growth in 2025? This week’s dose is a dive into what will lead to real change for your business. Our guest host Andriy Rudnyk shows you what KPIs to focus on, why, and some tips to improve them.

This week’s dose also includes a full podcast episode! Tune in on your favorite platform.

2025 Goals & KPIs for Subscription Success

Welcome back to Subscription Prescription! This episode offers insights for DTC subscription brands looking to set and crush their 2025 goals. Your guest host, Andriy Rudnyk, founder of GOOD Subscription Agency, shares the most common challenges regarding subscription KPIs, what KPIs to focus on, and how to set actionable targets to reach your revenue goals in 2025.

Here’s what you’ll take away:

The Big Subscription KPI Challenge:

• Most brands struggle to connect subscription KPIs (like LTV and churn) with overall business goals, leading to a lack of prioritization.

• The solution? Focus on revenue-tied KPIs and actionable targets broken down by quarter.

Key Metrics That Matter

1. Total Subscriber Count:

   • Tracks overall growth trends (gaining, losing, reactivating).

   • Action item: Monitor weekly to pinpoint where to push or adjust.

2. Average Order Value (AOV):

   • Easy to boost with upsells and cross-sells.

   • Action item: Experiment with pre-selected subscribe-and-save options at checkout to lift opt-in rates.

3. Average Order Count:

   • The number of orders a customer places annually – a simpler, revenue-tied alternative to LTV and churn metrics.

   • Action item: Encourage second and third orders with targeted onboarding, timely reminders, and stellar customer experience.

Why Average Order Count Is King

This is the average number of times a person buys from. For subscriptions, we’d consider this how many orders you’ll get (on average) from every new subscriber.

• Subscribers place 2-3x more orders annually than one-time customers.

• Second orders are critical – they mark the transition from trial to profitability.

Double Revenue in 2025 with this 3-Lever Formula

Increasing your customer number isn’t the only way to grow your business. Grow each of these metrics by 25% to get to 2X growth:

1. Total subscriber number.

2. AOC: Average order count.

3. AOV: Average order value.

You can tackle each of these by prioritizing a different one each quarter.

Monthly and Quarterly Focus Areas

Start out by working to improve Average Order Value with new offers and upsells to existing subscribers and as part of the purchase experience.

Focus on improving Average Order Count with better retention efforts after they subscribe, and getting cancellation flows to be better as well.

• Quarter 1 & 2: Prioritize improving AOV and AOC to build a retention platform.

• Quarter 3: Test offers to increase Subscriber # with acquisition and optimized offers.

• Quarter 4: Leverage retention + acquisition offers that work come Q4.

Actionable Tips for KPI Mastery

Here are some tips on how to improve each of these areas!

• Retention & Churn:

  • Track second-order opt-ins and subscription reactivation rates.

  • Use cancel flows with educational prompts, founder messages, and offers like “pause instead of cancel.”

  • Tools like Recharge’s cancel flow builder can save 20-30% of cancellations.

• Subscriber Growth:

  • Pre-select subscription options at checkout to boost subscribe-and-save rates.

  • Industry average: ~15%; Goal: 40-50%.

• First Impressions & Feedback:

  • Collect qualitative feedback on first-order satisfaction (0–10 rating) to preempt churn.

  • Post-second-order feedback helps fine-tune subscription cadence and onboarding.

Closing Notes

Remember, “What gets measured gets managed.” Set clear intentions for your 2025 goals and focus on the right KPIs to manifest success.

If you have questions about KPIs, churn, or subscription growth strategies, feel free to DM Andriy on LinkedIn. Here’s to a successful 2025!

Stay tuned for the next dose of Subscription Prescription next Tuesday. Matt will be back to help you drive growth in 2025.

 - Andriy Rudnyk 🩺

An Interim Subscription Doc