The Subscription Value Loop: A framework for growing consumer subscription businesses
by Phil Carter
updated 6d ago
The Subscription Value Loop: A framework for growing consumer subscription businesses
- Many subscription businesses offer a free tier, or a free or paid trial, to enable consumers to try out the experience before becoming a paid subscriber. A critical factor for subscriptions therefore becomes the conversion rate from the free tier or trial to paid customer.
from 10 Factors To Consider When Evaluating Consumer Subscriptions by Nikhil Basu Trivedi
sari added
- Type of company: Consumer subscription products; Most common North Star Metric: Engagement or customer growth
from Choosing Your North Star Metric by Lenny Rachitsky
Ted Glasnow added
- the best companies not only understand their “funnels” (where their users are coming from and convert down the stack), but also their loops (the process by which one cohort of users not only retains but leads to an additional cohort of users).
from See your Career as a Product by Substack
Keely Adler added
10 Factors To Consider When Evaluating Consumer Subscriptions
7 highlights
sari added
- For most consumer subscriptions, cohort churn declines as the cohort ages. Month 1 may have a churn rate of 15%, with the rate dropping to 3% by month 12. Intuitively this makes sense: subscribers who find less value cancel early, leaving the service with more committed members over time.
from Hidden Moats in Consumer Subscription by Eric Stromberg
sari added
- Shitty retention is ubiquitous
First, perhaps obvious, but no wonder retention in mobile products is terrible. I’ve often written about these benchmarks for retention:- daily retention of consumer apps: D1/D7/D28 of 60/30/15
- the % of active users — that is, DAU/registered — should be 25%
- or, for consumer/SMB subscription: M12 of >30%
When you ref... See morefrom How Novelty Effects and Dopamine Culture Rule the Tech Industry
alex added
- Type of company: UGC subscription-based products; Most common North Star Metric: Consumption
from Choosing Your North Star Metric by Lenny Rachitsky
Ted Glasnow added
- Early on, big things might start out feeling like a toy. But their ability to extend from one value proposition to the next, and address more and more of a market is the secret sauce you want to dream about. That's where high net dollar retention comes from. Companies that are able to drive usage (more volume of the same thing) or modules (adjacent... See more
from Markets, Markets, and Markets by Kyle Harrison
Juan Orbea added