News Post

The Subscription Value Loop: A framework for growing consumer subscription businesses

Lenny's Newsletter · 18d

This article discusses strategies for growing consumer subscription apps, presenting a framework called the Subscription Value Loop. Key tactics include: 1. Building a great product with a unique value promise 2. Optimizing pricing and packaging 3. Improving new user onboarding 4. Enhancing paid marketing efficiency 5. Optimizing paywall conversion 6. Emphasizing premium features 7. Reducing involuntary churn 8. Using motivation tactics like streaks and badges 9. Promoting word-of-mouth growth 10. Leveraging strategic discounts The article provides specific examples from successful apps like Duolingo, Spotify, and Calm. It emphasizes the importance of aligning with user motivations, continuously testing and iterating, and focusing on key metrics like retention and LTV/CAC ratio. The author, Phil Carter, draws on his experience advising consumer subscription businesses to provide actionable insights for growth.