Subscriptions & Retention

Keep customers engaged and reduce churn over time • 25 papers

8 subtopics

Churn Prediction & Prevention

Identify which customers are about to leave before they go

2012 2 cited

Customer Churn Prediction: A Survey

Wouter Verbeke, Karel Dejaeger, David Martens, et al.

Comprehensive survey of churn prediction methods and evaluation metrics.

2016 90 cited

Churn Prediction in Mobile Social Games: Towards a Complete Assessment Using Survival Ensembles

Á. Periáñez, A. Saas, A. Guitart, C. Magne

Survival analysis approach to churn with right-censoring and dynamic hazards.

Lifetime Value Estimation

Forecast how much a customer is worth over time

2005 448 cited

Counting Your Customers: Who Are They and What Will They Do Next? (BG/NBD)

Peter Fader, Bruce Hardie, Ka Lok Lee

The BG/NBD model for customer lifetime value with transaction data.

2005 448 cited

'Counting Your Customers' the Easy Way: An Alternative to the Pareto/NBD Model

Peter Fader, Bruce Hardie, Ka Lok Lee

Simplified BG/NBD model that maintains predictive accuracy with easier estimation.

2010 1 cited

Customer-Base Valuation in a Contractual Setting: The Perils of Ignoring Heterogeneity

Peter Fader, Bruce Hardie

Shifted-Beta-Geometric model for subscription businesses with discrete renewal periods.

Free-to-Paid Conversion

Convert free users into paying customers

2013

Freemium as a Marketing Strategy

Clarence Lee, Vineet Kumar, Sunil Gupta

Structural model of freemium conversion analyzing optimal feature restriction.

2014 67 cited

Making Freemium Work

Vineet Kumar

Practitioner framework for freemium strategy and conversion optimization.

Renewal & Cancellation Dynamics

Win back lapsed customers and prevent cancellations

2000

Does Retaining Customers Pay Off?

Werner Reinartz, V. Kumar

Empirical analysis of the relationship between customer tenure and profitability.

2008 55 cited

The Effects of Customer Satisfaction on Customer Spending

Lerzan Aksoy, Bruce Cooil, Keiningham, Tor

Links satisfaction metrics to retention and share of wallet outcomes.

Engagement & Habit Formation

Build product habits that keep users coming back

2009

A Behavior Model for Persuasive Design

B.J. Fogg

Foundational paper introducing the Fogg Behavior Model: Behavior = Motivation × Ability × Trigger. The academic framework underlying 'Hooked' and most digital habit formation research. Over 4,500 citations; essential conceptual foundation for product designers.

2014

Does Gamification Work? — A Literature Review of Empirical Studies on Gamification

Juho Hamari, Jonna Koivisto, Harri Sarsa

Seminal literature review establishing empirical evidence framework for gamification effects. Finds gamification provides positive effects on engagement but is highly context-dependent. Over 4,000 citations; the definitive academic synthesis on gamification.

2022

Measuring the Impact of Crowdsourcing Features on Mobile App User Engagement and Retention: A Randomized Field Experiment

Zhuojun Gu, Ravi Bapna, Jason Chan, Alok Gupta

Rigorous RCT examining how user-generated content features affect app engagement. Finds content submission reduces session-ending hazard by 11% and app abandonment by 14%. Methodological gold standard for engagement research.

2024

Digital Interventions and Habit Formation in Educational Technology

Keshav Agrawal, Susan Athey, Ayush Kanodia, Emil Palikot

Large-scale randomized experiment (10,000 learners) showing contest-based interventions increase engagement by 45% and create persistent habit formation effects (75% higher engagement 12 weeks post-intervention). Cutting-edge field experimental evidence from leading economists.

2018

Empirical Support for a Causal Relationship Between Gamification and Learning Outcomes

Paul Denny, Fiona McDonald, Ruth Empson, Philip Kelly, Andrew Petersen

Provides causal evidence linking gamification to outcomes mediated by behavioral changes. Validates Landers' theory of gamified learning with empirical evidence—important for understanding mechanism design.

Survival Analysis for Subscriptions

Model time until customers churn or convert

2004

Customer Attrition Analysis for Financial Services Using Proportional Hazard Models

Dirk Van den Poel, Bart Larivière

Comprehensive Cox proportional hazards application to customer churn with time-varying covariates. Demonstrates how demographic, environmental, and behavioral variables predict retention. Over 600 citations; foundational for survival analysis in marketing.

2007

How to Project Customer Retention

Peter S. Fader, Bruce G.S. Hardie

Develops the shifted-beta-geometric (sBG) probability model for contractual settings. Accounts for customer heterogeneity in retention rates and provides forecasts for tenure, lifetime value, and customer base valuation. Essential methodology for subscription businesses.

2021

A Competing Risks Model Based on Latent Dirichlet Allocation for Predicting Churn Reasons

Dorenda Slof, Flavius Frasincar, Veljko Matsiiw

Novel competing risks survival model predicting both churn propensity and churn reason. Incorporates text analytics (LDA) from customer service transcripts to distinguish service-provider-driven versus competitor-driven churn. Modern integration of NLP with survival analysis.

2021

Random Survival Forests with Competing Risks Framework

Applied to Subscription Churn

Combines machine learning (random forests) with competing risks methodology. Computes distinct risk profiles for different churn causes and identifies relationships between risks and customer behavior for targeted interventions.

Customer Base Analysis & Cohort Methods

Analyze customer populations and forecast value

1996

Manage Marketing by the Customer Equity Test

Robert C. Blattberg, John Deighton

Introduces the customer equity concept and decision calculus for balancing acquisition versus retention spending. Origins of viewing customers as assets. Over 1,000 citations; bridges practitioner and academic perspectives.

2004

Return on Marketing: Using Customer Equity to Focus Marketing Strategy

Roland T. Rust, Katherine N. Lemon, Valarie A. Zeithaml

Unified strategic framework enabling marketing options to be traded off based on projected financial return, operationalized as change in customer equity. Key contribution linking marketing decisions to shareholder value through customer equity.

2004

Valuing Customers

Sunil Gupta, Donald R. Lehmann, Jennifer Ames Stuart

Demonstrates how CLV can value firms including high-growth firms with negative earnings. Shows 1% improvement in retention improves firm value by 3-7%, while margin improvement yields only ~1% increase. Validated on Amazon, eBay, Capital One, E*Trade data.

Network Effects on Retention

Understand how social connections affect retention

2011

Social Effects on Customer Retention

Irit Nitzan, Barak Libai

Landmark study using data from 1 million cellular customers showing exposure to a defecting neighbor increases churn hazard by 80%. Establishes that social contagion affects retention similarly to adoption. Foundational paper for network effects on churn.

2013

Social Interactions in Customer Churn Decisions: The Impact of Relationship Directionality

Michael Haenlein

Extends social effects research by analyzing directed networks. Finds that only contacts the customer initiates communication with influence churn decisions. Demonstrates importance of relationship directionality and recency of neighbor churn.

2025

Exploring Peer Effects Associated with User Retention in a Socially Connected Business

Yijun Chen, Nitin Mehta

Uses gym membership data to study bidirectional peer effects in usage and churn. When high-centrality users churn, cascade effects increase average un-subscription by 7.2% within 6 months. Provides targeting guidance: short-term strategies should target low-centrality users; long-term should target high-centrality.

2018

In Pursuit of Enhanced Customer Retention Management: Review, Key Issues, and Future Directions

Eva Ascarza, Scott A. Neslin, Oded Netzer, Zachery Anderson, Peter S. Fader, Sunil Gupta, Bruce G.S. Hardie, Aurélie Lemmens, Barak Libai, David Neal, Foster Provost, Rom Schrift

Comprehensive review from 12 leading CRM scholars covering social connectivity's role in retention. Synthesizes literature on network externalities in multiplayer gaming, communications, and shared services. Identifies research frontier for network-oriented retention.

Must-read papers for tech economists and applied researchers