Welcome to the world of subscription-based house cleaning services! As a seasoned entrepreneur, I know firsthand the importance of tracking and measuring key performance indicators (KPIs) to ensure the success and growth of any business. In this post, we will delve into the top seven house cleaning on subscription KPI metrics that you need to keep an eye on. Let's get started!

• Monthly recurring revenue - This KPI measures the amount of money your company generates each month as a result of recurring subscriptions. It is the lifeblood of your business and worth tracking closely.
• Number of new subscriptions each month - This KPI measures the growth of your subscriber base. Keeping a steady stream of new customers is key to the long-term success of your business.

These are just a few of the many KPIs you should be tracking when it comes to house cleaning subscription services. In the following sections, we will explore each of the seven metrics in more detail and provide tips on how to track and calculate them. Let's dive in!

## Monthly Recurring Revenue

One of the most crucial metrics for understanding the performance of a subscription-based business model is Monthly Recurring Revenue (MRR). As a pro serial entrepreneur who has started and run many businesses, I can attest to the fact that tracking and calculating this KPI is paramount.

### Definition

MRR represents the predictable revenue stream generated by a subscription-based business on a monthly basis. It takes into account the number of subscribers and the monthly subscription rate.

### Use Case

MRR is an essential metric for subscription-based business models, as it allows you to determine the predictability and sustainability of your revenue stream. It also helps to identify trends and analyze the effectiveness of pricing strategies and marketing campaigns.

### How To Calculate KPI

The formula for calculating MRR is relatively straightforward:

MRR = Total Number of Subscribers x Average Revenue per User (ARPU)

### Calculation Example

Let's say your subscription-based business has 100 subscribers and the average monthly subscription rate is \$50. Your MRR would be:

MRR = 100 x \$50 MRR = \$5000

• Provides valuable insights into the financial health of your business on a recurring basis
• Allows you to identify trends and analyze the effectiveness of pricing strategies and marketing campaigns
• Helps to prioritize product development and understand customer behavior

• May not take into account one-time revenue streams, which can skew results
• Can be difficult to accurately calculate if you have a varying number of subscribers or revenue per user
• May not capture all sources of revenue for a subscription-based business

### KPI Industry Benchmarks

The industry benchmark for MRR varies depending on the type of subscription-based business you're running. In general, high-growth software as a service (SaaS) businesses aim for an MRR growth rate of 20-25% per month.

#### Tips & Tricks

• Consider implementing referral programs to increase your number of subscribers, thereby increasing your MRR
• Regularly review and analyze your MRR to identify areas for improvement or optimization
• Track your MRR over time to identify trends and make informed business decisions

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## Customer Retention Rate

As a business owner, one of the most important KPI metrics you need to track is customer retention rate. It measures the percentage of customers who continue to use your subscription cleaning service over a specific period.

### Definition

Customer retention rate is defined as the percentage of customers who remain subscribed to your cleaning service over a specified time.

### How To Calculate KPI

To calculate customer retention rate, you need to divide the number of customers who remain subscribed to your cleaning service by the total number of customers, and then multiply by 100 to get the percentage.

(Number of Customers Retained / Total Number of Customers) x 100 = Customer Retention Rate

### Calculation Example

Let's say you started your cleaning subscription service with 50 customers, and by the end of the year, 40 customers remained subscribed to your service.

(40 / 50) x 100 = 80%

Therefore, your customer retention rate is 80%.

• Helps you understand customer satisfaction and loyalty.
• Allows you to identify areas for improvement and make data-driven decisions to increase retention rates.

• Does not account for new customers acquired during the measurement period.
• May not accurately reflect customer loyalty for short-term subscription services.

### KPI Industry Benchmarks

The average customer retention rate for cleaning services is around 65-70%. However, it varies by industry and business size. It's essential to set a realistic benchmark based on your business' unique circumstances and industry.

#### Tips & Tricks

• Solicit customer feedback to identify areas of improvement and address their concerns to improve retention rates.
• Provide excellent customer support to keep customers satisfied and loyal.

## Top Seven House Cleaning on Subscription KPI Metrics

### Average Revenue per User

Definition: Average revenue per user (ARPU) is an important metric used to measure the financial success of a subscription-based business model. It represents the average revenue generated by each user or customer over a given period.

Use Case: ARPU is a crucial metric to track for house cleaning subscription businesses. It helps to identify how much revenue the company can generate from its subscribers. ARPU is critical in understanding the overall health of the business and a measure of how much revenue the company is generating from its customers.

How To Calculate KPI: To calculate ARPU, divide the total revenue generated by the number of subscribers during the same period. The formula for calculating ARPU is:

ARPU = Total Revenue / Number of Subscribers

Calculation Example: Suppose the house cleaning subscription company generates \$60,000 in revenue per month from 500 subscribers. The ARPU would be:

ARPU = \$60,000 / 500 = \$120

KPI Advantages: ARPU is an essential metric for understanding how your house cleaning subscription business is performing. It helps identify how much revenue is generated per user, which can help in making strategic decisions and improving pricing models.

KPI Disadvantages: The disadvantage of ARPU is that it does not account for the difference in subscription types, such as monthly, quarterly, or annual subscriptions. This can lead to inaccuracies when looking at the overall health of the business.

KPI Industry Benchmarks: In the house cleaning subscription industry, the average ARPU ranges from \$100 to \$200 per month. However, the benchmark could vary depending on the region, competition, and the pricing model used by the business.

#### Tips & Tricks:

• Offer discounts to customers who subscribe for longer periods to increase ARPU
• Monitor changes in ARPU over time to identify trends and areas for improvement

## Number of new subscriptions each month

### Definition

The number of new subscriptions each month is a KPI used to track the number of new customers who subscribe to a house cleaning service within a given time period.

### Use Case

This KPI is useful for tracking the growth of a house cleaning business and identifying trends in customer acquisition. By measuring the number of new subscriptions each month, businesses can determine the effectiveness of their marketing and advertising efforts, as well as any changes in customer demand.

### How To Calculate KPI

The formula for calculating the number of new subscriptions each month is:

New Subscriptions = Total Subscriptions This Month - Total Subscriptions Last Month

### Calculation Example

Suppose a house cleaning business had 200 total subscriptions in March and 250 total subscriptions in April. The number of new subscriptions for April would be:

New Subscriptions = 250 - 200 = 50

• Simple to calculate and track
• Provides insight into customer acquisition trends
• Helps identify areas where marketing efforts can be improved

• Does not provide information on customer retention or churn
• May not accurately reflect the overall health of the business

### KPI Industry Benchmarks

According to industry benchmarks, the average number of new subscriptions per month for a house cleaning business is approximately 20-30% of total subscriptions. However, this can vary depending on factors such as the size of the business, geographic location, and customer demographics.

#### Tips & Tricks

• Offer promotions or discounts to incentivize new subscriptions
• Use social media and email marketing to reach potential customers
• Partner with other local businesses to cross-promote services

## Percentage of customers who opt for bi-weekly or weekly cleaning services

Definition: The percentage of customers who choose bi-weekly or weekly cleaning services is a KPI that measures the popularity of these services among customers.

### Use Case:

This KPI is important for companies that offer house cleaning on subscription as it helps them understand the customer demand for bi-weekly and weekly cleaning services. By tracking this KPI, businesses can also identify trends and patterns in customer preferences and adjust their service offerings accordingly.

### How To Calculate KPI:

Divide the total number of customers who choose bi-weekly or weekly cleaning services by the total number of customers and multiply the result by 100.

KPI = (Number of customers who choose bi-weekly or weekly cleaning services / Total number of customers) * 100

### Calculation Example:

Suppose a house cleaning subscription company has 1,000 customers, out of which 300 customers opt for bi-weekly or weekly cleaning services. The percentage of customers who choose bi-weekly or weekly cleaning services is:

KPI = (300 / 1,000) * 100 = 30%

• Allows companies to understand customer demand for bi-weekly and weekly cleaning services
• Helps companies adjust their service offerings based on customer preferences
• Enables businesses to identify trends and patterns in customer behavior

• Does not provide insight into the reasons behind customer preferences for bi-weekly and weekly cleaning services
• May not be relevant for companies that do not offer bi-weekly or weekly cleaning services

### KPI Industry Benchmarks:

According to industry benchmarks, the percentage of customers who choose bi-weekly or weekly cleaning services is around 30-40% for house cleaning subscription companies.

#### Tips & Tricks:

• Offer special promotions or incentives to encourage more customers to sign up for bi-weekly or weekly cleaning services
• Survey customers to understand their reasons for choosing bi-weekly or weekly cleaning services and tailor service offerings based on their feedback
• Monitor competitors' service offerings and pricing to stay competitive in the market

## Average Customer Satisfaction Score

### Definition

As a house cleaning on subscription business, the average customer satisfaction score is a key performance indicator (KPI) that measures the overall satisfaction of your customers with the services you provide. It is the average rating given by customers based on their experience with the service provided.

### Use Case

The average customer satisfaction score KPI should be tracked by house cleaning on subscription businesses to ensure that customers are satisfied with the services they receive. This helps businesses to identify areas for improvement, maintain quality standards, and retain customers.

### How to Calculate KPI

To calculate the average customer satisfaction score KPI, you need to:

• Identify the number of customers who have provided feedback
• Calculate the sum of all the ratings received
• Divide the sum of ratings by the number of customers who provided feedback

KPI Formula: (Sum of ratings / Number of customers who provided feedback)

### Calculation Example

Suppose your house cleaning on subscription business has received feedback from five customers who have provided ratings on a scale of 1 to 5. The ratings received and number of customers are as follows:

• Customer 1: 4
• Customer 2: 3
• Customer 3: 5
• Customer 4: 4
• Customer 5: 5

To calculate the average customer satisfaction score, you need to:

KPI Formula: (4+3+5+4+5) / 5 = 21 / 5 = 4.2

Therefore, the average customer satisfaction score for your house cleaning on subscription business is 4.2.

• Provides a better understanding of customer satisfaction levels
• Helps businesses to identify areas for improvement
• Helps businesses to maintain quality standards

• May not accurately represent customer satisfaction levels if a small number of customers provide feedback
• Customers may not always provide honest feedback
• Does not provide detailed information about specific areas for improvement

### KPI Industry Benchmarks

According to a survey conducted by J.D. Power in 2020, the average customer satisfaction score for the house cleaning industry is 855 out of 1,000.

#### Tips & Tricks

• Encourage customers to provide feedback by offering incentives such as discounts or free services
• Regularly review customer feedback to identify areas for improvement
• Respond to customer feedback promptly and address any issues they may have

## Number of Referrals from Existing Customers

The Number of Referrals from Existing Customers metric is an important KPI to track for house cleaning subscription-based businesses. This KPI measures the number of customers who were referred to the business by existing customers.

### Definition

The Number of Referrals from Existing Customers KPI measures the success rate of your business in generating new leads through word-of-mouth marketing.

### Use Case

This KPI can help measure how well your business is performing in terms of customer satisfaction and loyalty. If you have a high number of referrals, it means that your existing customers are satisfied and are willing to recommend your services to others.

### How To Calculate KPI

To calculate this KPI, use the following formula:

(Number of New Customers Acquired from Referrals / Total Number of Customers) x 100

### Calculation Example

Let’s say your house cleaning subscription business has 500 customers and you acquired 50 new customers through referrals in the last month. To calculate the KPI:

(50/500) x 100 = 10%

• Helps to measure customer satisfaction and loyalty
• Indicates the effectiveness of word-of-mouth marketing

• Doesn’t measure the quality of the leads generated through referrals
• May not always accurately attribute new customers to referrals
• High referral rates may not necessarily translate to high revenue

### KPI Industry Benchmarks

The industry benchmark for the Number of Referrals from Existing Customers KPI varies depending on the type and size of the business. However, generally, a good benchmark to aim for is 10-15%.