Featured Image by: Matthew Henry
Receiving and increasing Monthly Recurring Revenue (MRR) is what most business owners dream about. It’s no wonder subscription business models have become the norm in e-commerce today.
Continuity business models rely on growth metrics like MRR to make predictions. It is a momentum metric designed to help you measure the rate of your revenue growth, not profitability. It’s a key performance indicator (KPI) for subscription businesses and often gives the most accurate status of your recurring revenue.
Understanding how to increase MRR and ARR (annual recurring revenue) is one of the driving factors that separates’ the unsuccessful from the successful elite in the business of eCommerce.
Choosing the right payment platform service is an important decision for subscription companies wanting to increase their business and MRR. PayWhirl’s recurring payment platform provides all the tools you will need to manage your recurring payments and steadily increase MRR.
Here are a few ways PayWhirl can help increase MRR
PayWhirl Analytics
PayWhirl can help increase MRR with analytics and reporting tools. These are the first things to look at when deciding what changes to implement for increasing revenue. Reports are necessary to accurately forecast and make the changes required to succeed. Visualizing a number of changes over time is where real value and insight usually lie. You can use these reports to focus on historical trends so you can make future predictions.
Being able to see changes to your MRR over time can give you direct insight into why it goes up or down in a given period. You can often correlate shifts to specific events that occurred in your business. As a business owner you need to know your monthly churn rate, MRR, and customer LTV (life time value) to accurately assess the health of your recurring revenue.
Tracking your attrition rate is valuable and helps you learn how often customers are jumping ship. By increasing retention, it will boost your customer lifetime value (LTV) which will help in increasing MRR. Keeping your customer base happy goes a long way in decreasing attrition rates and should be reviewed frequently.
PayWhirl Reporting
PayWhirl’s built-in subscription analytics cover all of the above with reports specific to the following:
MRR Report
Shows your monthly overview of MRR and top performing plans.
Subscription Report
Details how long customers stay subscribed to plans as well as total revenue each program generates.
Customer Report
Shows where subscribers are located and where your top revenue earners are coming from.
Growth Forecasting Report
Gives estimates on projected growth based on past sales numbers and churn rates.
Data from these reports provides the insight needed to make necessary changes for increasing MRR. PayWhirl is integrated with the most popular data gathering sites like: Google Analytics, Google AdWords, Cyfe, Kissmetrics; which are just a few places data can be sent with custom tracking script features. PayWhirls’ tracking ability, API, webhook functionality, and official integration’s provides complete and accurate data allowing you to make the best customers decisions.
Change Subscription Options
Altering or updating subscription options can help increase MRR. In order to accomplish this the ability to change/alter the details of subscription plans is vital. Making changes such as: increasing price, un-bundling features, ditching ‘unlimited’ features, and eliminating the ‘free’ plan are a few ways to increase your MRR.
PayWhirl lets you seamlessly change or update subscription plan options in your account making the transition easy and hassle free. You can make the changes from the back end of your PayWhirl account, as an admin… OR… From within your customer portal, as a customer or admin.
Aside from PayWhilr’s ease of updating subscription plans, they have excellent customer service for your questions or issues that may arise.
PayWhirl’s customer experience extends to your customers with a customer portal.Here they can login and manage payment methods, address information, custom questions, subscriptions and allows them to place subsequent orders. All recurring revenue streams are based on building relationships with your customers, because a happy customer, is a repeat customer.
Customized Widgets
PayWhirl offers ‘up sell’ widgets used to offer additional products and/or services at checkout as another way to increase MRR. Whether you need an option for per-user pricing, metered pricing , or just simple add-on pricing, up selling is a proven tactic for increasing MRR and revenue. PayWhirl’s widget allows you to increase up-selling customers and allows them to customize their subscriptions or payment plans infinitely.
Chained widgets and custom subscription funnels are one of the stronger features within PayWhirl:
PayWhirl also offers a “pricing table” widget. This is is used when you want a customer to choose one plan from different options. The “pricing table” widget works with the ‘up-sell’ widget (if you chain the widgets together). This gives customers more options and freedom to choose their desired selections within your product or service offerings.
Additionally, increasing account upgrades is an important factor in calculating a company’s MRR.
ARR (formula below) is the sum of all subscription revenues that came into your business within a given period. This includes: all recurring elements, account upgrades, account downgrades, and lost MRR from churn customers.
Recap on Increasing MRR
Businesses pay for value with the software they use to save time, save money, and make money. PayWhirls’ tools are valuable to the success of your business whether you are just starting up or expanding. They do more then just manage recurring payments; they can help increase Monthly Recurring Revenue to grow your business.
Feel free to check PayWirl out and see for yourself all the ways they can help you grow.
