Evaluating Customer Retention in Recurring Revenue Businesses
August 14, 2025
by an investor from Harvard University - Harvard Business School in Toronto, ON, Canada
This week, we take a deep dive into the concepts of customer retention and revenue quality in recurring revenue businesses.
To help me unpack these ideas, I was thrilled to be joined by Craig Zingerline, a serial entrepreneur who is now an advisor and mentor to a wide array of startups and technology companies. We covered a wide array of topics, including some of the following:
(1) A deep dive into the most common retention metrics, including which are most and least informative
(2) Situations in which high retention metrics might actually tell you that something is wrong within the business (or at least is worthy of a closer look)
(3) Things that he looks for that tend to be predictive of future customer retention
(4) Whether he cares about the difference between voluntary and involuntary churn
(5) How he thinks about software companies with high levels of service revenue
(6) Whether transactional revenue ought to be valued the same as per-user revenue
(7) What else he looks for to evaluate the revenue quality of any given recurring revenue business
Link to the episode is here: https://mineolasearchpartners.com/2025/08/14/evaluating-customer-retention-in-recurring-revenue-businesses-with-craig-zingerline/
Please enjoy!
from Ivey Business School at Western University in Toronto, ON, Canada
from Harvard University in Coral Gables, FL, USA