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Forecasting Subscription Revenue To Maximize Customer Value

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The subscription business model is not new. In fact, it has enjoyed long-term use as a viable business model to sell everything from newspapers and magazines to home telephone and cable services.

Today, however, the subscription and recurring revenue model has emerged as one of the hottest business trends due to the breadth of product and service offerings now available via this business model. Everything from music to movies to Software-as-a-Service (SaaS) offerings are now based on this ubiquitous model where customers subscribe to products, content, or services on a recurring payment plan.

In this paper, we will examine how to forecast revenues in a subscription and recurring revenue business model and what metrics should be measured and monitored for maximum success.

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