The 2025 Subscription Economy Index (SEI) report is out — and it’s full of fresh insights for finance, product, and revenue leaders navigating this changing monetization landscape. Download it here.
Every year, the SEI offers a data-driven snapshot of the companies and customer behaviors shaping the future of recurring growth. But this year’s report introduces something new: a metric we believe will change the way you think about your product strategy.
It’s called the Product Portfolio Balance Score, or PPBS.
This score calculates the balance between the size of your product offering and how frequently they are actually being sold and used. In other words, it helps you understand whether your product catalog is working for you.
And here’s why it matters: our analysis shows that the higher your PPBS, the greater your ARPA (average revenue per account). It’s a clear link. Companies that improved their portfolio balance saw a 118% increase in their PPBS over the last four years, and that improvement directly correlated with higher customer retention and stronger revenue per customer.
For the exact formula, I recommend you go through the SEI report. But here’s the big takeaway: it’s time to treat your product catalog like something that needs to be optimized, not just expanded.
Let me explain it another way.
Imagine a buffet. A small local one might offer just six dishes. If none of them appeal to you, you walk away hungry. Now imagine a Vegas mega-buffet with 50 options. Most of it will go untouched. It goes to waste. Now think of your product catalog. Are you offering too little? Too much? Or the right balance based on what customers actually want to buy?
That’s what PPBS helps measure. It’s about:
- Avoiding sales teams spinning up one-off SKUs that are never used again
- Helping Finance reduce exceptions and accelerate revenue recognition
- Giving Product real insights into which offerings create value
- Equipping CFOS and CAOs with a data-backed way to manage growth
Many companies are already shifting toward balance — whether intentionally or not. We’re seeing a wave of hybrid monetization: subscriptions mixed with usage, one-time charges, bundled offerings. And the companies that are winning aren’t just adding more. They’re optimizing smarter.
PPBS gives Finance leaders a new lens to talk about pricing strategy in a way that’s measurable and actionable. We’re not talking about shrinking your catalog. We’re talking about aligning your offerings to what drives growth — and cutting what doesn’t.
In short, a higher PPBS score directly translates to higher ARPA. And we now have the data to prove it.
Want to learn more about PPBS? We’re hosting an SEI webinar on April 29th. Register now!
