Subscription – Strategy
Our approach involves a combination of retention reporting, pricing strategy and long term forecasting. Through this we can optimise your subscription business
3 Marketing Levers: Acquisition, Retention, and Yield
Acquisitions are the volume of new customers or subscribers. This process consists of attracting and converting individuals or organisations into paying customers. To drive acquisitions, companies must allocate financial resources towards marketing. Increasing acquisitions generally reduce retention and yield.
Retention, in the context of subscription-based businesses, is the ability to maintain existing clients over an extended period. To do this, you must implement effective strategies and initiatives to reduce churn. To improve retention means acquiring a more loyal subscriber base or reducing subscription pricing.
Yield is the measure of revenue or financial return generated from a specific customer/subscriber over any given period. To improve yield will likely reduce retention and acquisition volumes.
‘Our approach involves a combination of retention reporting, pricing strategy and long term forecasting. Through this we can optimise your subscription business’
A watermelon chart provides a comprehensive overview of subscriber churn, including timing, enabling us to identify recurring patterns throughout a subscriber’s tenure. This analytical report allows us to investigate the factors contributing to high churn rates during specific periods, facilitating targeted interventions and remedial measures to mitigate churn and enhance customer retention.
Using your data, we produce a simple (but effective) report to analyse the volume, revenue, and yield of your current subscribers, categorised into ascending price points. This report, called Price by Tenure, shows subscribers grouped together by payment method (or region), tenure and pricing bands. For more information see Pricing Strategy.
Long Term Forecasting
A simple long term forecast model is built to forecast the long-term benefits of your subscription strategies. Which marketing lever will be more beneficial to your business over the next 3-5 years? Each scenario can be run in a matter of minutes, so you can optimise your subscription strategies.
We easily compare the volume, revenue and profits of each strategy against each other.
The effect of the potential strategies compared with BAU.
“Foresight are an integral extension of our marketing team, enabling us to make strategic marketing decisions through comprehensive and insightful reporting.”
Anna Lavelle – Head of Retention Marketing, Future
Foresight Data Consultancy
We devise a range of viable strategies, analyse and predict outcomesGet in Touch