Introduction: Track recurring revenue if you have products that earn money based upon usage over time.
Analysis Overview:
There are some situations where organizations sell products that have a recurring revenue stream. In these cases, you may want to track both initial and recurring revenue in your analytics data set.
Analysis Benefits:
If your organization offers products that accrue revenue each month or year, it may be the case that the lifetime value of website actions exceeds the initial sale. For example, if your website sells a monthly mobile phone service plan, you may earn $50 initially and then $0 each month thereafter. In this case, performing analysis on only the initial revenue could lead to incorrect marketing decisions. Therefore, it is incumbent on analysts to look at downstream revenue to get a more accurate picture of website/app performance.
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Adam Greco
Senior Partner, Analytics Demystified
adam@analyticsdemystified.com(847) 948-7965
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