---
id: "action-examine-repurchase-rates"
type: "action-item"
source_timestamps: ["§ What Executives Should Do"]
tags: ["data-analysis", "market-research"]
related: ["concept-inertial-market", "concept-variety-seeking-market", "framework-renewal-strategy-matrix"]
action: "Calculate period-over-period retention without friction to determine if your market is inertial (>70%) or variety-seeking (<50%)."
outcome: "Clear classification of market dynamics to inform the optimal renewal default."
sources: ["commercial"]
sourceVaultSlug: "hbr-seg-commercial"
originDay: 5
articleStem: "hbr-tier2-08-subscription-auto-renew"
sourceUrl: "https://hbr.org/2026/05/should-your-subscription-business-use-auto-renew"
sourceTitle: "Should Your Subscription Business Use Auto-Renew?"
---
# Examine organic repurchase rates to classify market type

**Action:** Analyze your product's **period-over-period retention *without* contractual friction**.

- If it **exceeds 70–80%**, treat your market as [[concept-inertial-market|inertial]] and lean toward **auto-cancellation**.
- If it is **below 50%**, treat your market as [[concept-variety-seeking-market|variety-seeking]] and lean toward **auto-renewal**.

This is Step 1 of the [[framework-renewal-strategy-matrix]].

**Outcome:** A clear classification of market dynamics to inform the optimal [[concept-renewal-default]].