When I first started talking about the Membership Economy, there just weren’t that many academics or researchers interested in studying the power of customer retention. That’s why I’m really happy to see some of the best minds in finance, strategy and marketing today are thinking about how to build, and measure durable relationships between organizations and the people they serve. Today’s guest, Eva Ascarza, is the Jakurski Family Associate Professor of Business Administration at the Harvard Business School. Her primary research subject is customer management (with special attention to the problem of customer retention). That’s good news for all of us building subscription businesses. In today’s discussion, we talk about the right metrics to measure and improve customer retention, how to use pattern recognition to predict which customers will be most valuable, and why cohort-based analysis is so important.
The single biggest source of churn might surprise you. It’s not a communications issue, or a product/market fit issue, or even an onboarding problem....
Making pricing simple can be really complicated, especially in the world of subscriptions, where every pricing change can affect how much your members trust...
Nearly every industry can benefit from joining the Membership Economy, and most industries have great examples of subscription-based organizations. One of the slowest movers...