B2BVault's summary of:

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

Published by:
Lenny's Newsletter
Author:
Phil Carter

Introduction

Most subscription apps fail to grow. This guide shows how top apps like Duolingo and Tinder break through using one key loop.

What's the problem it solves?

Most consumer apps struggle to grow because they rely too much on ads, lose users quickly, and can’t raise how much each person pays. This guide helps teams fix those problems by building strong, lasting value that keeps users coming back and paying.

Quick Summary

Launching a subscription app is easy, but growing it is very hard. Apps often rely on paid ads, have trouble keeping users, and don’t make much money from each person. This makes it tough to survive, let alone grow big. Only a few apps like Spotify and Calm reach huge success.

This article introduces the "Subscription Value Loop," a 3-step system: (1) create value people care about, (2) deliver that value to more people using smart channels, and (3) turn users into paying subscribers. Top apps repeat this loop to grow stronger over time. The post explains how to build this loop, measure it, and improve it using a free calculator and 10 clear strategies. Case studies from real companies show exactly how they did it.

Key Takeaways from the article

  • Most apps lose users fast and can’t earn more from each one
  • The best apps build around a strong, clear value that people want
  • Growth happens by repeating three steps: create, deliver, and capture value
  • Use a free tool to find weak spots in your app's growth loop
  • Fix weak areas with proven strategies: better onboarding, pricing, and more
  • Make your paywall clear, fast, and emotionally appealing
  • Use quizzes and fast sign-up to make onboarding personal and quick
  • Add motivation features like streaks and badges to keep users hooked
  • Offer smart discounts and build web flows to lower ad costs
  • Word of mouth and high retention matter more than ads in the long run

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