#subscription-model

Design and optimize subscription business models for recurring revenue. Subscription metrics: 1. Monthly Recurring Revenue (MRR): predictable monthly income. 2. Customer Lifetime Value (LTV): total revenue from average customer. 3. Churn rate: monthly customer cancellation rate. 4. Net Revenue Retention (NRR): expansion minus churn from existing customers. Pricing strategies: 1. Good/Better/Best: clear upgrade path with anchoring. 2. Usage-based: pay for what you consume (aligns value with cost). 3. Flat rate: simple but may leave money on table. 4. Freemium: free tier with paid features/limits. Retention optimization: 1. Onboarding: drive time-to-value and habit formation. 2. Feature usage tracking: identify at-risk customers. 3. Proactive support: reach out before problems escalate. 4. Engagement campaigns: email, in-app notifications for inactive users. Pricing experiments: test with new customers only, analyze conversion and retention impact. Tools: ChartMogul, ProfitWell for subscription analytics, Zuora for billing management.