The Ultimate Guide to Subscription Analytics

2021-10-14

Now more than ever, subscriptions are a huge part of people’s daily lives.

Not so long ago, ecommerce stores focused on one-off purchases to scale their businesses. But consumer buying preferences have shifted — brands and customers are focusing on relationship-driven ecommerce, and subscriptions are at the heart of that change.

In fact, subscriptions are now the fastest growing area of ecommerce and show no signs of slowing down any time soon. The subscription ecommerce industry is projected to be worth over $246 billion by 2025 — scaling by more than 9,400% since 2016. In two years, Shopify Plus anticipates that 75% of direct-to-consumer (DTC) businesses will offer subscriptions.

In this post, we’ll cover…

The benefits (and shortcomings) of adding a subscription service to your ecommerce store
How to get accurate subscription tracking in Google Analytics
Headless tracking for subscription stores
The most important metrics and tools to get your subscription service off the ground

Benefits of adding a subscription service

If you’re interested in growing your monthly sales and revenue, adding a subscription service is a great place to start. Subscriptions pose an exciting opportunity for ecommerce stores to unlock potential revenue, build long-lasting relationships with their customers, and create a community among consumers.

One of the most notable benefits of subscription ecommerce is the consistent, recurring revenue. The predictable income that comes along with subscriptions allows management to:

Plan and invest accordingly
Order and manage inventory more effectively
Project profits with ease and accuracy

As Shopify Plus put it in their article on the benefits of subscription ecommerce, “on a deeper level, ecommerce subscriptions are about strong customer relationships. Subscriptions turn customers, who already see the value your company provides, into loyal followers who become reliable sources of recurring revenue.”

In fact, the longer a customer uses your product or service, the more valuable they become to you. Plus, higher customer retention rates mean lower acquisition costs in the long term.”

Where subscriptions fall short

Unfortunately, Shopify stores offering subscriptions consistently fall short in one area — their analytics setups.

Shopify Analytics gives you the baseline data, but doesn’t give you the full picture of your customer’s journey. That’s why many merchants rely on Google Analytics (GA) to dive deeper into their data.

If you’re using Shopify’s native Google Analytics connection, you’ve probably run into a whole other set of issues. From data mismatches to aggregated orders, it’s evident that Shopify and Google Analytics don’t work well together on their own.

We sampled a set of larger DTC brands on Shopify, processing over 50,000 monthly orders through a standard Shopify checkout, and found that on average only 88% of orders processed are recorded in Google Analytics. That’s a major loss; for every 100 Shopify orders, 12 go missing in Google Analytics.

Subscription stores face even greater data discrepancies, with up to 70% of Shopify orders being tracked in Google Analytics on a good day and as little as 7% being tracked on, well, a not-so-good day. The major mismatches you see in subscription stores are due to the fact that orders are processed without any customer interaction.

Data mismatches, no matter how big or small, hurt your bottom line. Whether it be marketing spend that can’t be attributed to sales or faulty retargeting campaigns, you can’t afford to make decisions based on inaccurate data.

For data-driven DTC brands, accuracy is everything! Otherwise, you’re just leaving money on the table. Lucky for you, there is a solution to fix your subscription tracking in Google Analytics.

Tracking subscriptions in Google Analytics

Searching for a tool for tracking subscriptions that works right out of the box and ensures accurate reporting? Littledata is it. Using a combination of server-side and client-side tracking, Littledata captures data at every customer touchpoint.

I know what you’re thinking — sounds too good to be true. So here’s the rundown on how the Littledata app works:

Upon installation, Littledata adds a data layer onto your ecommerce site containing all Enhanced Ecommerce events — Google’s term for each crucial touchpoint in the customer journey.
Littledata then adds a tracking script to capture each event as it happens.
Finally, using combined client-side and server-side tracking, the app tracks all transactions and ensures 100% accuracy in reporting one-time orders, recurring payments, lifecycle events, and everything in between.

We work with the top subscription services on Shopify and BigCommerce to empower your ecommerce store with complete data. Littledata automatically audits and fixes your data right at the source, bringing you complete and accurate data in Google Analytics, Segment, or any of your favorite reporting tools.

Our plug-and-play solution is as simple as that. Minutes after installing, you’ll have access to truly meaningful data and the power to make your marketing dollars work better for your store.

What does this mean for you?

Make marketing and sales decisions backed by data that you can trust
Track one-time orders, first-time payments, and recurring transactions
Accurate marketing attribution data for one-time and subscription orders
Measure LTV by product, channel, or source
Track multiple checkout funnels with 100% accuracy
Get the full picture of your customers’ journey with tracking at every touchpoint
Complete tracking for headless setups

Tip: Follow our simple guide to start tracking Ordergroove subscriptions in Google Analytics.

Tracking subscriptions in other reporting tools

While Google Analytics may be the most commonly used reporting tool, it’s far from the only one on the market. The tools below are also widely popular for analytics tracking:

Segment
Google Data Studio
Tableau
Power BI

The good news? Littledata’s plug-and-play solution integrates automatically with these tools as well.

Segment

Segment’s data pipeline lets you collect, clean, push and pull customer data from one platform into dozens of others without the difficult engineering. Then you can utilize different connections, protocols, and personas (or single-user views) to analyze that data.

Littledata’s source for Shopify and Shopify Plus enables you to automatically send ecommerce events into any of Segment’s hundreds of destinations. Once you’ve set it up you’ll be able to capture metrics from every customer touchpoint and attribute results from your Facebook and Google Ads spend with 100% accuracy thanks to our server-side tracking.

Headless tracking for subscription stores

Headless commerce doesn’t have to come at the cost of missing data. Whether your site uses a collection of headless landing pages or a full headless architecture implementation, Littledata’s Shopify to Google Analytics connection is compatible with headless setups to capture Enhanced Ecommerce events and ensure a complete data match between Shopify and Google Analytics.

What metrics are the most important for subscription stores?

Analytics really matters when it comes to subscription ecommerce, which is why identifying key metrics is that much more important.

The three most important metrics, which indicate your store’s performance, growth, and longevity are:

Average order value (AOV)
Customer lifetime value (LTV)
Churn

These metrics will guide your sales and marketing decisions and ultimately determine the fate of your store.

Average Order Value

AOV — the average amount spent by customers when they place an order — measures sales trends and reflects customer behavior and buying preferences. This can be one of the trickiest metrics to increase. Boosting AOV is a priority goal for ecommerce teams as it directly impacts profits (and customer lifetime value).

Order value can be maximized with upsells and cross-sells, but there’s a fine line between encouraging and annoying your customers. Ecommerce tools like CartHook and subscription apps like ReCharge specialize in incorporating unobtrusive upselling into your customers’ buying experience, providing an easy solution to one of our customers’ biggest feats.

Tip: Find out if your AOV is in good shape: benchmark your ecommerce store against thousands of other brands in your sector.

Customer Lifetime Value

LTV is considered a “universal indicator;” it’s a comprehensive metric that encompasses the overall health of your subscription store. LTV is the best indicator of churn, best projector of profit, and best aid in decision making.

When it comes to marketing and sales decisions, LTV helps you easily identify which products and channels are your top performers and bring you your most valuable customers.

Find out how you can use Littledata’s custom dimensions to calculate customer lifetime value with your data in Google Analytics.

Churn

For subscription stores especially, Shopify stores live and die by churn — the rate at which subscribers stop subscribing to your store. Churn is the flip side of your retention rate, revealing how many customers shopped with you and didn’t return.

Your churn rate is a critical indicator of the health of your subscription business, reflecting its overall viability in the long run.

Where to see the data

Data is everywhere. But at Littledata, we believe that you should have full ownership of your own ecommerce data. Unlike reporting tools that focus on external data storage or complicated interfaces, Littledata automatically audits your setup, fixes your tracking, and leaves it where it should be: with you.

From discovery at the source to events throughout their shopping experience — our combined server-side and client-side tracking captures data at every touchpoint and sends that data directly to Google Analytics or Segment.

If you’re using our Google Analytics app for Shopify, you can see that data directly in Google Analytics, Google Tag Manager, or your favorite reporting tool that works with GA, like Google Data Studio. If you’re using our Segment app for Shopify, you can send data to hundreds of Segment destinations for analysis or remarketing.

Tip: Read our free guide on how to make data-driven decisions for Shopify plus stores and grow your store with better metrics.

Apps to fuel your ecommerce subscriptions

Both Shopify and BigCommerce have a wide array of plug-and-play subscription apps that make it easy to boost your store’s performance; Littledata has built connections with the top subscription services in ecommerce to equip your team with the tools needed to make data-driven decisions.

ReCharge

ReCharge is a leading subscription management app, designed to let your store offer subscriptions with a few clicks. Since 2014, merchants of all sizes have used ReCharge’s billing and payment solutions to grow their business by increasing customer lifetime value and reducing customer churn.

ReCharge has helped to power the growth of industry-leading brands like Wild and Grind through their revenue-boosting tools like upsells, SMS and email notifications, and actionable subscription insights.

Check out our interview with Teddy Robinson, CMO and Creative Director of Grind, and find out how they harnessed accurate data to grow their monthly subscriptions by 50x in just three months.

Bold Subscriptions

Bold Subscriptions helps merchants to generate predictable recurring revenue and build customer loyalty with a customizable subscription program that’s unique to your business.

The app is compatible with multiple ecommerce platforms, integrates with over a dozen payment gateways, and allows merchants to craft any subscription program with API customization. Bold Subscriptions is widely used across ecommerce platforms by brands like Wulf’s Fish and Staples Canada.

Ordergroove

Ordergroove is a recurring billing solution that helps merchants maximize subscriber enrollment, grow their AOV, and boost customer retention. Ordergroove allows customers to create a personalized subscriber experience through promotions, rewards programs, and more.

It’s a popular solution for larger brands — like Yankee Candle and Kind Snacks — and offers a range of integrations to help brands scale.

Smartrr

Smartrr’s subscription ecommerce app is designed for Shopify and Shopify Plus merchants to offer personalized subscriptions to their customer base, allowing subscribers to manage their recurring orders, providing gifting options, and offering upsell add-ons and product swaps that increase customer satisfaction.

Their no-code approach makes it easy for early-stage ecommerce stores — like Misfits Market and Sanzo — to hit the ground running with subscriptions.

Paywhirl

PayWhirl provides powerful widgets & tools to manage your recurring billing. Paywhirl helps ecommerce stores sell subscriptions, pre-orders, payment plans, and more.

Rebillia

Rebillia makes subscription easy by giving customers the option to save payment information for future purchases, subscribe to their favorite products or services, and send powerful, automatic recommendation emails according to purchase history. Rebillia empowers major brands like Charmin and Gillette to sell by subscription.

Should you use Google Tag Manager (GTM)?

This depends primarily on the marketing tags that you plan to use and the sources you want to collect data from.

If you’re looking for an automated solution, Littledata’s connections can easily replace GTM tags for Google Analytics and Google Ads through server-side tracking. Littledata takes care of tracking for other data destinations like email marketing tools and CRMs as well.

But, if you plan to use other marketing tags (like TikTok, Pinterest, or Twitter) then you will need to set them up using GTM. For this solution, Littledata offers a plus plan that includes a full GTM setup to make sure you have accurate tracking.

So what’s next?

The rise in subscription ecommerce is just heating up; what better time than now to launch your subscription store? From subscription management to analytics and more — there are tons of apps across Shopify and BigCommerce to help you scale your business.
Take the first step towards making data-backed decisions with your 30-day free trial with Littledata.

Gabrielle

Gabrielle is a marketing associate at Littledata. She strives to make analytics information as simple & accessible as possible.

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Data Strategy

Top 5 data tracking mistakes to avoid as a DTC brand

First-party data and server-side tracking is no longer an afterthought for DTC brands and ecommerce managers—rather, it is a centrepiece to their tech stack. But how do you make sure you aren’t “reinventing the wheel” when it comes to 1st party tracking? With the increasing number of “data platform” options it is often challenging to know what is truly needed for accurate attribution. With over 1500+ stores using Littledata’s Shopify and BigCommerce tracking app, we’ve learned a thing or two about the mistakes brands can often make. Allow us to help set the record straight and be a helping hand as you scale up your efforts in 2022. 1. Making data a lesser priority when launching We’ve talked to entrepreneurs across industries and one thing is certain—all are motivated to grow their business and many are managing multiple efforts across the business. One that often gets skipped in launching and updating a Shopify store is setting up data as an afterthought or using default or native tools that miss the mark. Some of the common replies we receive from customers that find out they have a data problem is that they planned on getting to it later or we thought we were getting all the information with pixel tracking (client-side) and the classic it just wasn’t in the budget. The first two we understand, because until folks know this can be automated with a tool like Littledata, the time for learning APIs, implementation, and maintenance can be overwhelming. However, we’ve seen brands give Littledata a shot as a temporary solution and report hours of time saved in an increase in their retention efforts like skincare brand Geologie. When it comes to budget we know the difference between those who do not prioritise data and those who truly can’t add this additional line item. That is why our Client Services team launched a new Littledata Startups program specifically for those just getting going. We have already offered a generous 30 day trial for merchants but realised some teams need a longer runway after seeing companies like Flux Footwear soar in the first year of getting started. 2. Thinking that fancy reporting will fix your data issues There are a lot of nifty reporting and visualization tools out there. But none of them actually fix your tracking. When reviewing how the platforms work be sure to ask about how the data is tracked and reported. While many reporting of these tools offer merchants a great UI/UX experience or insights they can also miss on the most important step, tracking. We are excited to see Google Analytics 4 offer free reporting tools and improved user experience in explorations. This will allow merchants to get more granular insights in GA4 which many consider their single source of truth. Littledata isn’t the new kid on the block. We got our start helping brands first hand get up and running with their data solutions. Then in 2017 we launched our app on Shopify that solved a big problem merchants were facing—accurate data and attribution. The issue we are hearing from partners and customers is that newly launched data tools are not fixing the tracking and analytics but rather they are pulling the data (which is likely inaccurate) and reporting through visualisation tools. We know this because our customers who use these other tools do so after fixing the tracking and attribution issues they are facing with Littledata. Then they use these reporting tools and dashboards in order to analyse the data or generate reports from the insights and recommendations of these tools. Or focus on fixing the tracking and conversion data. Nearly 1 of 5 orders is missed using Shopify’s native tracking tool. Littledata’s engine stitches together client-side and server-side tracking, without server setup and fees needed by merchants, to report end-to-end tracking. This includes important events like add_to_cart, one_time vs. recurring subscriptions, refunds, purchases, and more. We also calculate from these events Lifetime Value (LTV) and Average Order Value (AOV) so that merchants can understand what is really happening in their business—right in Google Analytics. If that wasn’t enough we also work out-of-the-box with many of the SMS, Subscriptions, and post-purchase upsell apps merchants are already using in their store or checkout. Making it easy to find out which channels or tools are working or not. 3. Short-term thinking about setup costs and maintenance This one is self explanatory but often gets missed. Because of our deep integrations with Shopify and BigCommerce our team is always making updates, improving the product, and implementing best practices for the Littledata app. Supercharging your store and functionality without having to outsource which often leads to scope creep. When you get started with Littledata you know exactly what you will be paying month to month with our tiers based on your order volume and not the revenue you bring in. Meaning you are paying for the data you are using and getting access to the same tools 100M GMV companies are using. This predictability makes it easy for merchants to budget for data tracking without having to account for surprises of outsourcing on your own. The best part is that Littledata has partnerships with some of the top agencies in the ecosystem like Swanky, Underwater Pistol, and Ragnarok. Recently, Steven Aldrich the Co-CEO of Ragnarok said on this topic: Merchants not aligning their tracking plan to their actual use cases; building your tracking plan on common sense and legacy schemas with no application is a surefire way to get little to no value out of your tools We don’t think there should be surprises when it comes to pricing. You can learn more on how we structure pricing here or by booking a chat with our Client Services team. 4. Missing the golden opportunity of creating audiences Creating audiences has to be one of the top priorities of any marketing team for retargeting and creating lookalike audiences. We know when you can understand your audience demographics through reporting and build and target your audience by metrics like LTV and AOV it can do wonders for brands. We’ve already seen Google Analytics 4 improve this by tightening up the relationship between Analytics and Ads. Now using event based tracking vs. session based tracking we will be able to understand customer behaviours even more and develop effective strategies to run ads and reduce wasted spend on the wrong audience. One area we are excited to see expanding within our own customers tracking portfolio is the implementation of Meta Conversions API which enables browser and server side tracking of your events in Facebook Ad Manager. Here you review events and create new campaigns based on this advanced implementation of server-side. The best part is Littledata reports many of the most needed ecommerce events right out of the box that you would have to set up manually through other means of connection. 5. Regular data health checks When maintaining your data stack it is important to know your data is flowing properly from your store to Google Analytics or Segment from your decisions like Shopify or any third party apps you use like Recharge Payments. Manually checking and testing these connections outside of Littledata can be a hassle and time consuming. With Littledata we show your live processed orders and connection details are active. This can help with any troubleshooting that might occur and as a normal check that the data is flowing properly. Merchants can often overlook this small detail but it can be a good habit to instill for any size organization. Any missed orders or transactions could amount to a lost opportunity for merchants or missed insights in your analysis. Recently, we caught up with Littledata’s Head of Client Services, David Pascu, who shared how this plays out in action for brands: Imagine it's the end of the quarter, and you're preparing to analyze a new product's purchase activity compared to a similar product launched in the previous quarter—only to find that the new theme you launched a couple of months ago broke the event tracking on the product detail pages, it went unnoticed, and you don't have the right data to work with. Frustrating, right? I stopped counting how many teams at top DTC brands have voiced their frustration about such situations. This is why tools like Littledata are valuable so that you have complete data without any unpleasant surprises. Let's be realistic, mistakes can happen within any business but it's our responsibility to limit those mistakes where possible. At Littledata we pride ourselves on building an app that can help your business thrive and grow through accurate data and analytics. Don’t make another mistake by missing out on 30 days with no strings attached to try our app with your store. P.S. Worried your conversions are not tracking well in Google Analytics 4 (GA4)? Use our GA4 conversion checker to see in a few clicks if your property is set up properly.

by Blake

2023-03-29

Google Analytics

A deep dive into Shopify's Google channel for GA4

You might have seen the message below in your Shopify store settings about setting up the Google Channel app. What should you do when you see this message? Shopify offers a number of sales channels to make it easy to sell products on different online channels like Facebook and the Shop app. The Google sales channel is a bit different, since 1) it now also includes Google Analytics 4 (GA4) tracking, and 2) it is now managed directly by Google. Although we work with larger merchants at Littledata, who typically use external apps and agency partners to manage sales channels and analytics, we’ve been getting a lot of questions about the recent updates. Here’s a first look at what the Google Channel app does, and how that compares with other ways to set up Google Analytics 4 (GA4). What is the Google Channel app? Shopify launched the Google Channel app back in 2017 to provide an easier way for stores to sell on Google, using Google Ads and Google Shopping. It’s free to install, though of course you pay for the Ads ;) “Sync your products to Google Merchant Center, list products for free on Search, YouTube and more and even run paid Performance Max campaigns.” In the relaunch in March 2023 Shopify/Google added tracking for GA4, along with better support for Google PMax (Performance Max) campaigns. Shopify wants to offer you with a no-code install process for GA4, but adding the Google Channel won’t “avoid any data disruptions” for all stores. [subscribe] Why Shopify is moving GA4 tracking to the Google Channel Universal Analytics - the previous GA version - will stop collecting data on 1st July 2023, so Shopify was under pressure from customers to offer in-built GA4 tracking ahead of that deadline. GA4 is also Google’s preferred way of tracking conversions in Google Ads, and PMax campaigns need conversions (purchases) tracked to maximize Cost Per Acquisition (CPA). I also think Shopify wants to push support for GA4 onto Google by moving all of the Google connections out of their core platform and into a ‘third party’ app. What’s included in Google Channel tracking? The Google Channel app allows a store to pick a GA4 property and copies most of the ecommerce event tracking available from Shopify to Universal Analytics: Page views Product views (including product name and price) Add to cart Checkout started Purchase (Order completed) [note]Are you tracking conversions in GA4? Find out in 5 minutes with our free order checker app[/note] What are the limitations of Google Channel for tracking GA4? Firstly, the Google Channel is built to work with Google Ads. However, there’s many other reasons to use Google Analytics other than for Google Ads targeting: tracking all marketing channels, understanding on -site conversion, checkout conversion, product performance and more. Shopify hasn’t optimized the tracking for that. So there are some limitations with the events sent to GA: No tracking of product list views or clicks No checkout steps, beyond begin_checkout * No currency field on Product Detail views No reporting on product SKUs No tracking of coupons and discount codes No server-side tracking for accurate orders and revenue No Enhanced Conversions for cross-device tracking of Google Ads * Theoretically, an event is triggered when users add payment info, but we couldn’t get this to fire in multiple tests. See a full comparison with Littledata tracking. Secondly, the GA4 tracking is tightly coupled with the implementation of Google Shopping feed (which has some bugs, judging by the thirty 1-star reviews from the last month) so while you can just use the GA4 part of the Google Channel app, you run the risk of disrupting Google Analytics when you edit Google Ads settings. Thirdly, there are no settings to adjust the Google Channel tracking - so if you want only certain events tracked, or integrate with third-party apps, your hands are tied. "There are no settings to adjust the Google Channel tracking. So if you want only certain events tracked, or integrate with third-party apps, your hands are tied." Lastly, Shopify does not provide full support for GA4 tracking via the Google Channel app. The app is theoretically supported by Google, but Google only provides technical support if you pay $50k+ a year for Google Analytics 360. Other than that you’d need to pay a consultant to check the set up for you. What is the best way to set up GA4? You need to start getting data into GA4 by July this year - not just for analysis, but also for building audiences and retargeting your own customer base in Google Ads. So beyond this app, you have two options: 1. Add Google Tag Manager to your store theme Pros: Reliable page view tracking, simple to customize settings, free to run Cons: No tracking of the checkout steps (even for Plus stores), revenue in GA won’t match revenue in Shopify, lots of time (and developer cost) required to set up all the shopping behavior events 2. Use a proven, highly rated app like Littledata Pros: Reliable tracking of the whole customer journey in GA4, 100% match between orders and revenue in Shopify, no implementation effort, no developers needed, instant data quality; and Littledata is optimized for Shopify Plus, including headless tracking, Shop App tracking and multi-currency tracking in GA4 Cons: Ongoing app charge to maintain data quality [note]Are you tracking conversions in GA4? Find out in 5 minutes with our free order checker app[/note] Why server-side tracking? The basic limitation of the Google Channel is client-side tracking -- which means all the events to Google are sent from the end user’s browser. This isn’t a reliable way to attribute sales to marketing campaigns in an age when many browsers and ad blockers limit tracking. The world of web analytics has changed a lot since Shopify added GA via the Shopify store preferences back in 2014 - but Google Channel isn’t changing how the event data is actually tracked. In contrast, server-side tracking allows apps like Littledata to hook into what is happening on Shopify’s servers from the add to cart onwards. This means 100% of revenue can be tracked and the vast majority (~90%) of that can be linked to a pre-checkout user journey and marketing campaign. There’s many apps that promise to ‘fix’ marketing attribution (Rockerbox, Northbeam, etc), but the only way to get truly reliable tracking of orders and revenue is server-side tracking. What your store should do today While I understand that Shopify wants to provide an out-the-box integration with Google Analytics for smaller stores, this Google Channel won’t be suitable for any scaling brand spending heavily on online customer acquisition and retention. You DO need to start tracking in Google Analytics 4 ASAP! If your brand turns over less than $1M a year, and you don’t have the time to dive into marketing attribution and targeting, then the Google Channel may be enough right now. And that's great! But if you are doing $1M+, or need to dive into the details of what drives customers to purchase, then I don’t think the Google Channel will be robust enough for you. If you're ready to be truly data-driven this year, consider applying for a Littledata Plus plan so we can support you fully with higher SLAs and analytics training for your team. Shopify has reason to launch limited free apps (eg reviews, email and geolocation) to address the concern that their sticker price doesn’t reflect all the paid app add-ons you need to run a store. Yet professionals at growing brands know you need paid apps to guarantee quality and support. Littledata’s Google Analytics connection is no exception -- try it for free in the Shopify App store today!

by Edward

2023-03-27

The Ultimate Guide to Subscription Analytics

Now more than ever, subscriptions are a huge part of people’s daily lives.