Course ID: TUMMLV

Time’s Up!: From the Math of the Moment to Lifetime Value

Most firms measure the economics of the moment. Subscription businesses measure the economics of the relationship. A subscription is not simply a recurring payment or a new pricing technique. It is a different business model—one organized around an ongoing relationship rather than a series of disconnected transactions. This session explores the economics, psychology, and design of the Subscription Business Model, including the shift from transaction-level profitability to customer lifetime value. Participants will examine the Subscription Covenant, with the Member at its center and three essential responsibilities surrounding the relationship: Flourish, Find, and Fund. The course also explores how subscriptions change pricing, capacity planning, customer acquisition, retention, and the accounting information needed to understand the true economics of the business.

This course can be customized to grant 4.0 – 8.0 CPE credits.

Learning Objectives

Distinguish a true subscription business model from transactional services, value-based pricing, and simple recurring-revenue arrangements.
Identify the economic advantages of managing the customer relationship over its lifetime rather than evaluating each engagement as a stand-alone transaction.
Recognize the elements of the Subscription Covenant—Flourish, Find, and Fund—and how they support an enduring relationship centered on the Member.
Identify the accounting information and economic measures needed to evaluate the performance and sustainability of a subscription business.

Major Topics

Why a subscription is a business model, not merely a billing method
Moving beyond the “math of the moment” toward customer lifetime value
Customer acquisition cost, lifetime value, retention, churn, and other subscription measures
How subscriptions affect demand forecasting and capacity planning
The psychology of subscriptions and the value of convenience, continuity, access, and peace of mind
The Subscription Covenant: placing the Member at the center of the model
Flourish—helping Members make meaningful progress
Find—continually discovering emerging needs, aspirations, and opportunities to create value
Fund—creating an economic model capable of sustaining and improving the relationship
Designing and pricing the relationship rather than individual services
Plussing the offering—why uncommon value commands premium prices
How subscription pricing differs from Value-Based Pricing
Moving beyond predetermined scope toward responsiveness to changing Member needs
Why subscriptions require different accounting information from transactional businesses

Advanced Preparations

None

Who Should Attend

This course is designed for CPAs, CGMAs, and other accounting professionals interested in understanding the economics and strategic implications of subscription-based business models. It is particularly relevant for managing partners, partners, executives, and firm leaders responsible for strategy, pricing, innovation, client relationships, and new business models who want to move beyond transaction-level thinking and better understand the economics of customer lifetime value.

Fields of Study

Business Management & Organization

Prerequisites

None

Provider

Business Learning Institute

CPE Credits

8.0

Level

Basic

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