Posted by: Mark Upson
What if you could track your subscriber relationships as easily as your financial portfolio? Think of Demand Rating™ as the P/E Ratio for the subscriber relationship—it’s the strength of product demand in a single number. Where the P/E ratio for a company is a financial indicator of investor demand for a company’s stock, giving investors a single, normalized number that can be analyzed and compared across the portfolio, Demand Rating gives that same type of clarity for the strength of the subscriber relationship, i.e., subscriber loyalty.
Pretty powerful stuff considering most companies must rely upon the subjectivity of the account team to determine subscriber loyalty. Yes, they use pseudo numbers like “confidence level” with guidelines for what they mean—but most organizations have no real way to put subscribers back-to-back and order them definitively. Until now.
Demand Rating is a key metric for paid-content that is incredibly powerful in its simplicity. The rating compares how much a subscriber uses a service to how much they pay for it—usage divided by contract value. Depending upon the offering, usage can be tracked as the number of sessions, downloads or transactions, and contract value is just that—how much the subscriber pays. The ratio between the two is quite potent, normalizing all the variables and resulting in a quantifiable indicator of demand/loyalty for each specific subscriber.
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