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- W4224320997 abstract "Understanding the value of acquiring or retaining subscribers is crucial for subscription-based businesses. While customer lifetime value (LTV) is commonly used to do so, we demonstrate that LTV likely over-states the true value of acquisition or retention. We establish a methodology to estimate the monetary value of acquired or retained subscribers based on estimating both on and off-service LTV. To overcome the lack of data on off-service households, we use an approach based on Markov chains that recovers off-service LTV from minimal data on non-subscriber transitions. Furthermore, we demonstrate how the methodology can be used to (i) forecast aggregate subscriber numbers that respect both aggregate market constraints and account-level dynamics, (ii) estimate the impact of price changes on revenue and subscription growth and (iii) provide optimal policies, such as price discounting, that maximize expected lifetime revenue." @default.
- W4224320997 created "2022-04-26" @default.
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- W4224320997 date "2022-04-25" @default.
- W4224320997 modified "2023-09-25" @default.
- W4224320997 title "Beyond Customer Lifetime Valuation: Measuring the Value of Acquisition and Retention for Subscription Services" @default.
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- W4224320997 doi "https://doi.org/10.1145/3485447.3512058" @default.
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