Subscription Stories: True Tales from the Trenches Going Deep on Customer Retention Analytics for Subscriptions with Harvard Business School's Eva Ascarza
Jun 7, 2023
Eva Ascarza, Jakurski Family Associate Professor at Harvard Business School, dives into customer retention analytics. She emphasizes the importance of metrics like cohort analysis for identifying valuable customers. Ascarza shares her journey from mathematics to marketing, revealing how data mining shapes customer dynamics. She discusses navigating retention challenges, including seasonality and churn predictions, and highlights the balance of data ethics in marketing practices. A must-listen for those in subscription businesses!
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Early Exposure to Churn
- Eva's banking internship revealed a marketing team's ignorance of active customer churn.
- Seeing money already left sparked her passion to study customer retention in marketing.
Dual Approach to Retention
- Measure customer lifetime value first, then target interventions to retain valuable customers.
- Probability models predict aggregate behavior; machine learning helps tailor individual interventions.
Start Retention With Simple Signals
- Begin retention analysis with simple, clear indicators like acquisition channel and first purchase.
- Use easy signals to identify higher versus lower value customers before applying complex models.