JOURNAL OF APPLIED BUSINESS AND ECONOMICS
The Retention Rate Illusion: Understanding the Relationship Between Retention Rates and the Strength of Subscription-Based Businesses
Author(s): Patrick J. Wierckx
Citation: Patrick J. Wierckx, (2020) "The Retention Rate Illusion: Understanding the Relationship Between Retention Rates and the Strength of Subscription-Based Businesses," Journal of Applied Business and Economics, Vol. 22, Iss.14, pp. 104-114
Article Type: Research paper
Publisher: North American Business Press
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.