MA.8:1 - Problem frame

A service can earn a positive margin from an active customer this month while still failing to recover acquisition spending. Future service demand, retention and collection determine a different part of the account. An established customer’s continuation also raises a different question from acquiring a new customer.

Products have their own time structure. Development, production, warranty, support and withdrawal can occur in different periods. A subscription-retention formula does not describe every product’s later obligations.