Do discounts make money? We analyzed 3M subscriptions across billions of $$ (churnkey.co) 4 points by khushick 11mo ago ↗ HN
[–] khushick 11mo ago ↗ Hi, we ran a detailed study at Churnkey across billions of dollars in revenue and millions of subscriptions.We found that:Customers who accept a discount stay 5.1 months longer on average.11% remain subscribers over a year later, even after the discount expiresFor the customers in the 90th percentile, they stayed for an average of 13.4 months when offered a discount at point of cancellationDiscounts were accepted 8.7% of the timesPeople accepted discounts within 45 seconds when offeredData biasesChurnkey has anti-abuse built in so people can't misuse discountsWe only offer discounts at point of cancellation to retain customers.Open to interpretations on the data.
1 comment
[ 5.6 ms ] story [ 16.7 ms ] threadWe found that:
Customers who accept a discount stay 5.1 months longer on average.
11% remain subscribers over a year later, even after the discount expires
For the customers in the 90th percentile, they stayed for an average of 13.4 months when offered a discount at point of cancellation
Discounts were accepted 8.7% of the times
People accepted discounts within 45 seconds when offered
Data biases
Churnkey has anti-abuse built in so people can't misuse discounts
We only offer discounts at point of cancellation to retain customers.
Open to interpretations on the data.