Journal of Applied
Finance & Research

Abstract

This paper examines the relationship between strategic pricing decisions and customer lifetime value in business to business subscription software markets. Using cohort level revenue data from a sample of mid market vendors, the study formally estimates the joint effects of introductory discounts, contract length, and feature gating on retention and expansion. The interest of the analysis is in providing a defensible framework for pricing committees that must reconcile near term growth targets with long horizon unit economics.

References

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