Volume : 12, Issue : 1, JAN 2026

CONSUMER RETENTION STRATEGIES IN SUBSCRIPTION-BASED BUSINESS MODELS

AISHWARYA SHARMA, DR. SUSHIL KUMAR DAIYA

Abstract

Subscription-based business models (SBBMs) have become a dominating commercial structure in a number of industries in the modern digital economy, including media streaming, software-as-a-service (SaaS), e-learning, fitness, and e-commerce. While gaining new members is still crucial, successful customer retention tactics are becoming more and more crucial to the long-term viability of subscription businesses. Retention improves customer lifetime value, lowers acquisition costs, and increases brand loyalty in addition to guaranteeing ongoing revenue. The strategic, behavioral, and technological aspects of customer retention in subscription-based company models are examined in this study.

Using a conceptual and analytical approach, the study synthesizes ideas from current digital consumer behavior, industry practices, and previous literature. It looks at the distinctive traits of subscription customers, such as their demands for consistent value, customization, and a smooth user experience. Key factors that influence customer retention are identified in the article, including perceived value, fair pricing, personalization, customer interaction, trust, and service quality. It delves deeper into how contemporary technologies—specifically, data analytics and artificial intelligence—have revolutionized retention tactics by facilitating proactive churn management, personalized experiences, and predictive insights.

A significant focus of this paper is the psychological and relational aspects of retention. Unlike transactional business models, subscription models require ongoing consumer commitment, making emotional connection, trust, and satisfaction critical retention determinants. The paper discusses how strategies such as loyalty programs, content freshness, flexible pricing, customer support excellence, and ethical data usage influence long-term consumer relationships.

Additionally, the research highlights challenges faced by subscription businesses, including subscription fatigue, price sensitivity, and increasing competition. The paper argues that retention strategies must evolve from aggressive lock-in mechanisms to customer-centric, transparent, and value-driven approaches. It also emphasizes the importance of balancing technological automation with human-centered design to avoid consumer dissatisfaction.

The paper concludes by proposing a strategic retention framework that integrates behavioral insights, technological tools, and ethical considerations. This framework can assist managers, researchers, and policymakers in designing sustainable retention strategies that align business objectives with consumer wellbeing. By offering a comprehensive examination of retention dynamics in subscription-based business models, this research contributes to the growing academic and practical discourse on long-term digital business sustainability.

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IESRJ

International Educational Scientific Research Journal

E-ISSN: 2455-295X

International Indexed Journal | Multi-Disciplinary Refereed Research Journal

ISSN: 2455-295X

Peer-Reviewed Journal - Equivalent to UGC Approved Journal

Peer-Reviewed Journal

Article No : 23

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