Subscription Business Model
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Subscription models differ from other models in that the customer has a choice of how to pay for the product. He can select a pricing plan based on the product features that are available on that plan, as well as select the number of paid periods, e.g., month, year, etc.
This feature significantly changes the average order value (AOV) modeling formula. This formula allows you to answer the questions why you should add another plan, what granularity (month, year, half year) to choose. How to incline customers to choose this or that plan, due to the distribution of functionality. For each of these features are responsible for their own metrics, AIV - normalized per month price of the plan, AIS - the share of customers who chose the plan, ALT - average lifetime of the customer who chose the plan.
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