Wondering how healthy your membership site really is? As a membership owner, you should be! Understanding just a few key metrics can be the difference between steady growth and head-scratching cancellations.
But if you’re not a math whiz or marketing guru, there’s no need to worry. In this article, we’re breaking down the nine most important metrics to help you scale your membership.
These metrics are the foundation for a healthy, thriving community, so even if you don’t follow them all, it’s worth including at least a few to make more informed decisions about your membership business.
We’ll break these metrics down into two categories:
This tells you how many people regularly log in and interact with your membership. Track active logins by day, week, or month. You can also dig deeper by looking at content views, lesson completions, likes, comments, and community posts.
Why does this matter?
Active members are happy members. When they're engaged and making progress, they're more likely to stick around. That means less cancellations and more money in your pocket.
Boost active members by:
How to calculate it:
Active Member % = (Active Members ÷ Total Members) × 100%
A simple spreadsheet could look something like this:
|
Month |
Total Members |
Active Members |
Active Member % |
|
January |
100 |
65 |
60% |
|
February |
120 |
80 |
67% |
|
March |
130 |
90 |
69% |
Active Member Goal:
An active community is the heartbeat of your membership site.
Typically, seeing 40–60% of your members actively engaging with your content is a good sign that you’re on the right track. This means your members are logging in regularly, interacting with resources, and truly finding value in the community.
If your active member percentage falls below this range, it might be time to consider fresh strategies to re-engage your audience and boost overall participation. Definitely aim for higher!
This measures how much your members engage with your content (not just community activity or logins).
This includes the number of videos watched, total watch time, lessons completed, downloads made, or resources accessed. Usually, you measure this as a percentage.
Why does this matter?
High content consumption means your members see the value in your offering. If they’re watching, reading, or downloading, it’s working. Low numbers? It might be time to reassess what they really want.
Boost content consumption by:
How to calculate it:
Content Consumption Rate % = (Number of content pieces accessed (or finished) ÷ Total available content pieces) × 100%
Depending on your platform, content consumption can be tracked at different levels of detail, such as views, partial completions, or full completions. Decide how granular you want to get based on your membership goals.
Example:
Total available lessons: 10
Average lessons accessed or completed by members: 6
Content Consumption Rate = (6 ÷ 10) × 100% = 60%
Content Consumption Goal:
There isn’t a universal “one-size-fits-all” target for content consumption. Most membership sites aim for at least a 50–60% consumption rate.
If you’re consistently seeing rates of 60% or higher, that’s a sign your content is hitting the mark. Ultimately, your benchmark depends on your content type, how frequently it’s updated, and how you define “completion.”
Watch for trends. If you notice your consumption rate dropping, it’s a good signal to reassess your content strategy.
Your Member Retention Rate tells you how many of your members are sticking with you month after month. It highlights the success you're having at keeping existing members engaged, happy, and paying!
Why does this matter?
Retention impacts sustainability and profitability. It’s five times cheaper to keep a current member than it is to find a new one. And members who stick around longer are more likely to refer others, upgrade, and engage.
Quick Tip: If your retention drops, act fast. Send a survey, spark a conversation, or offer a check-in call. Early action can save relationships (and revenue).
Here are a few ways to boost member retention:
“People come for the content, but stay for the community” — Stu McLaren
How to calculate it:
Member Retention Rate (%) = ((Members at end of period – New members acquired during period) ÷ Members at start of period) × 100%
Retention calculations can happen monthly, quarterly, or annually, depending on your goals. Consistency is key. Pick a timeframe that aligns best with your membership cycle and stick to it.
Example:
Member Retention Rate = ((155 – 20) ÷ 150) × 100% = (135 ÷ 150) × 100% = 90%
In this example, your Member Retention Rate would be 90%, indicating strong member satisfaction and engagement.
Retention Rate Goal:
A healthy membership site often sees retention rates around 85–90% or higher. High retention signals that members find ongoing value and are less likely to cancel, saving you time and money in the long run.
Even a small boost in retention rate can have a huge impact on your bottom line.
For example, increasing monthly retention from 90% to 95% in a 50-member, $20/month membership over 12 months can generate an additional $2,300!
Want to know more about retention? Download our free guide: The Retention Recipe.
This is the flip side of retention—tracking how many members you're losing (vs. keeping). It measures the percentage of your members who cancel their membership during a specific time period, usually monthly or annually.
Why does this matter?
Churn gives you insight into the health and perceived value of your membership. High churn is a red flag. Even a slight reduction in churn can significantly boost your membership site's revenue.
Reduce churn by:
How to calculate it:
Churn Rate (%) = (Number of memberships cancelled during period ÷ Total members at start of period) × 100%
Quick Tip: Churn rate is most commonly calculated on a monthly basis, which allows you to spot trends and intervene quickly.
Example:
Total members at the start of the month: 150
Memberships canceled during the month: 15
Churn Rate = (15 ÷ 150) × 100% = 10%
In this example, your Churn Rate is 10%. Lower churn percentages reflect a healthier, more sustainable membership site.
This is your predictable, consistent income from active subscriptions each month. It's one of the best indicators of your membership site's financial stability and growth potential.
Why does this matter?
It’s your financial foundation. Stable Monthly Recurring Revenue (MRR) means you can plan, hire, reinvest, and sleep a little easier at night.
You can boost MRR by:
How to calculate it:
MRR = Total Paying Members × Average Revenue per Member
Example:
Total Paying Members: 100
Average Revenue per Member: $50/month
MRR = 100 × $50 = $5,000/month
In this example, your Monthly Recurring Revenue would be $5,000 per month.
This measures how much a single member is worth over their full membership journey.
Why does this matter?
The higher your Customer Lifetime Value (LTV), the more sustainable (and profitable) your membership becomes.
Here’s how to boost LTV:
How to calculate it:
LTV = Average Revenue per Member × Average Membership Duration
Example:
Average Revenue per Member: $50/month
Average Membership Duration: 12 months
LTV = $50 × 12 = $600 per member
In this example, your Customer Lifetime Value would be $600 per member.
This is the average amount of money you spend to gain one new member. It helps you determine if your marketing and sales efforts are working.
Why does this matter?
A lower CAC means efficient growth. This can increase your profits and ensure long-term financial health. If it’s too high, it’s time to optimize your funnel.
Quick Tip: Aim for a CAC that's lower than your Customer Lifetime Value (CLV). The larger the gap, the healthier your membership becomes.
Lower CAC by:
“Stories are your most powerful marketing asset.” — Stu McLaren
How to calculate it:
CAC = Total Marketing Spend ÷ Number of New Members
Example:
Total Marketing Spend: $2,000
New Members Acquired: 40
CAC = $2,000 ÷ 40 = $50 per new member
In this example, your Customer Acquisition Cost is $50 per member.
This is your average monthly income per member.
Why does this matter?
Increasing ARPU means more revenue without needing more members.
You can boost ARPU by:
How to calculate it:
ARPU = Total Monthly Revenue ÷ Total Members
Example:
Total Monthly Revenue: $5,000
Total Members: 100
ARPU = $5,000 ÷ 100 = $50 per member/month
In this example, your Average Revenue Per User is $50 per month.
The LTV to CAC Ratio measures the relationship between the lifetime value of a customer (LTV) and the cost to acquire that customer (CAC).
This shows how profitable your member acquisition strategy is.
Why does this matter?
It’s the ROI on your growth efforts. A ratio of 3:1 or higher means you’re doing great, and you’re earning at least 3x more from a member than it costs to bring them in.
Quick Tip: Monitor and compare your LTV:CAC ratio month-over-month.
Improve your LTV:CAC ratio by:
How to calculate it:
LTV:CAC Ratio = Customer Lifetime Value (LTV) ÷ Customer Acquisition Cost (CAC)
Example:
Customer Lifetime Value (LTV): $600
Customer Acquisition Cost (CAC): $50
LTV:CAC Ratio = $600 ÷ $50 = 12:1
In this example, your LTV to CAC Ratio would be 12:1, showing very healthy profitability and growth.
These nine metrics aren’t just numbers. They’re signals, stories, and clues that help you understand what’s working, what’s not, and where to go next as you grow your membership.
Start simple by picking 2 or 3 metrics to track this month. Then, get curious. Run a few tests and add more over time.
And remember: behind every stat is a real human you’re helping grow. So, keep your eyes on the numbers, but your heart with your members.
Let’s keep it simple. Keep it helpful.
And most of all—let’s keep it growing. 🚀
Want to see how Membership.io can help take your membership to the next level? Click here to book a demo!