- Increased lifetime value of customers: Retention optimization helps subscription businesses to keep their customers for longer periods of time, which increases the overall revenue generated from each customer.
- Reduced customer acquisition costs: Retention optimization helps to reduce the costs associated with acquiring new customers, as it is less expensive to retain existing customers than it is to acquire new ones.
- Stable and predictable revenue stream: Retention optimization helps subscription businesses to maintain a stable and predictable revenue stream, which is crucial for forecasting and budgeting. This allows companies to make informed decisions about the direction and growth of the business.