The Retention Rate Illusion: Understanding the Relationship Between Retention Rates and the Strength of Subscription-Based Businesses
DOI:
https://doi.org/10.33423/jabe.v22i14.3969Keywords:
business, economics, retention rate, renewal rate, subscription-based business, churn, customer-centric metricsAbstract
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
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