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

Lenny's Newsletter · 1m

This Article features Phil Carter's 'Subscription Value Loop', a framework for scaling consumer subscription apps. It highlights challenges like distribution control, reliance on paid acquisition, and high churn. Successful apps build on a strong core value and harness it to create a compounding loop involving Value Creation, Delivery, and Capture. Case studies from Duolingo, Spotify, and others illustrate these tactics in action. The article provides a calculator to measure loop performance against benchmarks. Key growth levers include optimizing pricing, improving onboarding, boosting paid marketing with web flows, and reducing churn by building community and adding features. Save, read and share it.