The Subscription Value Loop: A framework for growing consumer subscription businesses
Phil Carterlennysnewsletter.com
The Subscription Value Loop: A framework for growing consumer subscription businesses
Type of company: Consumer subscription products; Most common North Star Metric: Engagement or customer growth
Lenny Rachitsky • Choosing Your North Star Metric
customers who subscribe tend to stick with the app longer (probably because they feel they have a long-term relationship with the app instead of a one-off interaction), meaning they’ll pay the company more money throughout their lives. In business terms, customers will have a higher “lifetime value” (LTV), and maximizing LTV is widely seen as the h
... See moreAditya Agashe • Swipe to Unlock: The Primer on Technology and Business Strategy (Fast Forward Your Product Career: The Two Books Required to Land Any PM Job)
One of the reasons Subscriptions are so profitable is that they naturally maximize Lifetime Value.
Josh Kaufman • The Personal MBA: A World-Class Business Education in a Single Volume
...consumers are less likely to churn when they subscribe for a product or service they need. Aspirational services (e.g., gym/fitness memberships, audiobooks, meal kits) are usually the first subscriptions to go when consumers find that they can’t live up to their aspirations for being healthier or reading more.
Angela Tran Kingyens • The continuous rise of SaaS in the consumer space - Version One
In short, subscriptions are not a panacea. Price changes do not solve product/market fit on their own. But, if your product gets better with more usage, addresses a naturally recurring behavior, and has a potential “upgrade tier” of users, a subscription model could be very successful.
Alex Taussig • Firehose #182: 💰 Subscription addiction. 💰
True loyalty is emotional and irrational, and often at odds with our survival instinct. To achieve it, brands are better off with membership programs than the point schemes. Figuring out a good membership scenario is even more important today with a proliferation of subscription models, private chat rooms, and an ever-increasing costs of paid socia... See more