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Membership or subscription businesses can be extremely valuable. Consider your mobile service company for example. It probably has millions of customers paying it every month for service. As a result, monthly revenues are consistent and profits are high.

While some businesses such as health clubs are naturally structured as membership programs with customers paying monthly, virtually any business could add a membership component to its model. For example, customers of a hardware store might pay a monthly fee for special discounts, extended store hours or access to training programs. Likewise, a manufacturer could establish a program whereby it ships customers a predetermined amount of new product each month.

While establishing a membership business can be great, the key is to make sure it’s successful. To do this, you must track and improve the most important key performance indicators (KPIs) for membership businesses. These KPIs are as follows:

Current Member Count/Number of Subscribers: In general, the more members paying you, the better. So, while this metric is fairly basic, knowing what it is and publicly displaying it to your team can ensure everyone focuses on improving it.

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