The Retention Rate Illusion: Understanding the Relationship Between Retention Rates and the Strength of Subscription-Based Businesses

Authors

  • Patrick J. Wierckx MN

DOI:

https://doi.org/10.33423/jabe.v22i14.3969

Keywords:

business, economics, retention rate, renewal rate, subscription-based business, churn, customer-centric metrics

Abstract

This paper discusses five important pitfalls when using customer-centric metrics and offers suggestions for adjustment to these metrics in order to make them more useful for various stakeholders. Furthermore, the paper introduces an innovative framework that uses multiple customer-centric metrics to assess the strength of a subscription-based business model.

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Published

2020-12-30

How to Cite

Wierckx, P. J. (2020). The Retention Rate Illusion: Understanding the Relationship Between Retention Rates and the Strength of Subscription-Based Businesses. Journal of Applied Business and Economics, 22(14). https://doi.org/10.33423/jabe.v22i14.3969

Issue

Section

Articles