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Predict and Bring Back Straying Subscribers

Posted on 6.04.2013

The subscription business model is taking off. For companies, it’s a stable business model that appeases investors and stakeholders. From the customer side, there’s a value of paying only for what they actually consume. 

Companies, however, haven’t been able to take advantage of the in-depth customer data that the subscription business provides. Enterprises that measure and monitor usage data, for example, can gain a wealth of insight they need to manage their businesses and monetize their products according to Denis Pombriant, managing principle of Beagle Research Group, LLC. By understanding usage data, companies can align their pricing and renewal efforts.  

Scout Analytics’ newest product, a closed-loop Renewal Performance Mangement solution, can help. It actually predicts renewal opportunities and then tracks the resolution to improve revenue yield.

“Unlike financial reporting systems that focus on aggregate reporting of monthly recurring revenue, Scout’s new Renewal Performance Calculator is the only technology to transform historical renewal data into actionable predictive analytics,” said Matthew Shanahan, senior vice president of strategy at Scout Analytics. “Scout’s solution enables real-time tracking, source analysis and predictive analytics so subscription businesses can maximize customer lifetime value.”

Let’s explore a mock example. If Website Magazine used Scout’s new Renewal Performance Calculator, we could look at a subscriber’s usage and predict if they will renew or not. Did they read Website Magazine's July issue or interact with the Website Magazine apps? The dashboard will then send us a recommended action based on that usage, e.g. send that reader an email campaign or put them in touch with our subscription services department. Then, Website Magazine can track how that prediction actually performed.  We can then change our “rules” based on the outcome and work with a Scout revenue advisor to adjust our tactics based on best practices and other analytics. 

Scout Analytics isn’t just for media publishers though. Scout boasts more than 100 customers including those in the software-as-a-service and information services realm. 

A free trial of the Renewal Performance Management solution is available at

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