Ever had someone ask about your product’s attach rate? Has your reaction elicited that burning sensation of panic when you realize you’re not quite sure what they’re asking? Relax and read on. We’ve got the quick definition, examples, and formula you need to reply calmly the next time you’re asked, “What’s the attach rate?

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What Is a Business's Attach Rate?

The attach rate, also commonly referred to as an attach ratio, is the number of add-on products/units sold in relation to a primary product/unit. For example, how much merch is sold in relation to the number of tickets purchased for a concert?

A business’s attach rate helps them measure the health of the company. If attach rates are high, your customers are likely happy with your product. So happy, in fact, they want to buy more from you. It also signals that your sales and marketing teams are working efficiently and that buyers are aware of and motivated to buy complementary offerings.

If a company’s attach rate is low, you customers may not find value in your product/service, or they may not know you have other offerings available. Survey your buyers to learn which barriers they face and adjust your product or sales and marketing approach accordingly.

To calculate an attach rate, divide the number of secondary units sold by the number of primary units sold. Then, multiply that number by 100.

how to calculate attach rate

Here are a few examples:

Examples of Business Attach Rates

What’s the attach rate of new cars sold to the number of dealership maintenance packages sold? If 42 new cars are sold in one month, and 15 maintenance packages are sold, the attach rate would be 36%.

(15 / 42) X 100 = 36%

For every freemium software signup earned, how many paid features are purchased? If your company nets 60 freemium software signups in a month and sells 25 paid feature add-ons to that group of users, the attach rate would be 42%.

(25 / 60) X 100 = 42%

If a bike shop sells 30 bicycles in a month and 25 helmets in that same month, the attach rate would be 83%.

(25 / 30) X 100 = 83%

Attach Rate Forecasting

Forecast an attach rate as you would your normal sales forecasting. Make sure you’re considering internal and external factors that may affect those numbers. These factors can include seasonality, staffing, market changes, product changes, and economic conditions.

For example, if your attach rate for printers (75 sold) to reams of paper (50 sold) is 67% in Q3, but you’re forecasting a decrease in printer sales in Q4 (60 sold) while maintaining the same paper ream sales (50 sold), you might reasonably forecast a shift in attach rate to 83%.

Attach rates can be a helpful business metric to keep your business and your product/service on track and prospering. Calculate yours today and discover more important KPIs to measure here.

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Originally published Jul 26, 2019 7:30:00 AM, updated July 26 2019

Topics:

Sales Metrics