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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$27,000

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.

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