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When is a retention discount cheaper than letting the customer go?
Weigh retained contribution against discounts offered to customers who would have stayed anyway.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Cancellation save offers / month
- 500
- Genuinely saved share of offers
- 20 %
- Offer recipients who would stay anyway
- 15 %
- Monthly subscription price
- $100
- Contribution margin before discount
- 80 %
- Discount for retained months
- 20 %
- Discount / retained duration
- 6 months
Net contribution from monthly save cohort
Example result only, not a forecast or promise.
- Genuinely saved accounts
- 100
- Discount leakage to organic stays
- $9,000
- Contribution / genuinely saved account
- $360
What to do with this result
Use a holdout to estimate incremental saves and discount leakage; accepted offers alone overstate retention lift.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Benefit = offers × retained months × price × [incremental saves × (margin − discount) − organic stays × discount].
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use one matched customer cohort and consistent periods. Recurring revenue, bookings and cash are different measures.