Sub Club by RevenueCat

On the podcast we talk with Phil about how to effectively use benchmarks to aid decision making, the limitations of benchmarks, and why even the best companies aren’t top quartile in every single metric.Top Takeaways:📏 Benchmarks are a starting point, not a roadmapTreat benchmarks as directional indicators to uncover growth opportunities and prioritize actions, but don’t chase them blindly. They work best as tools for identifying areas to explore rather than metrics to perfect.🏆 Focus on strengths over chasing perfectionIt’s unrealistic to aim for excellence in every area. The most successful companies lean into their strengths, improve key weaknesses, and focus resources where they will make the biggest impact.⚔️ Beware of misleading benchmarksNot all benchmarks are helpful. Poorly sourced, overly generic, or irrelevant data can lead to wasted effort or misguided decisions. Use benchmarks that are specific to your category, geography, or growth stage.🔍 Metrics only matter with contextNumbers on their own don’t tell the full story. A high churn rate might be fine if you acquire users cost-effectively and retain high-value customers. Metrics need to be interpreted with a deep understanding of your product and target audience.💡 Data is powerful, but intuition seals the dealData highlights where to focus, but the most effective decisions come from pairing metrics with experience, intuition, and a clear understanding of your customers. This balance of analysis and instinct drives smarter, more impactful strategies.About Phil Carter👨‍💻 Growth Advisor at Elemental Growth, a consultancy dedicated to scaling consumer subscription companies through actionable benchmarks and strategic insights👥 Phil Carter is committed on empowering consumer subscription companies to achieve sustainable growth by leveraging benchmarks, refining growth strategies, and identifying key opportunities for value creation, delivery, and capture.💡  “Where people get in trouble with benchmarks is they try to make them the end-all. be-all right. They try to do more with them than they really should be.”👋  LinkedInResources:Elemental Growth WebsiteFollow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[1:37] The Subscription Value Loop: Phil introduces his framework for driving sustainable growth through value creation, delivery, and capture, and how it applies to subscription businesses.[5:52] Benchmarks as tools: Phil explains how benchmarks are a directional tool to guide decision-making and identify growth opportunities rather than an end-all, be-all.[13:07] Judging good ideas: The team discusses how great execution relies on judgment and filtering good ideas to focus on what moves the business forward.[20:53] Using the Subscription Value Loop: Phil shares how the framework acts as a diagnostic tool for spotting bottlenecks in client businesses and setting growth priorities.[24:47] The impact of pricing and free value: Phil describes a fitness app’s challenge with over-delivering value for free, resulting in low subscription conversion rates and pricing adjustments.[30:26] The power of subscription retention insights: Phil explains how understanding differences in retention between annual and monthly subscribers can shape pricing and product strategy.[36:32] Interpreting benchmarks through context: The hosts discuss how benchmarks differ based on the business model, user acquisition strategy, and market dynamics.[42:46] Paid vs. organic growth strategies: Phil underscores the risks of being overly dependent on paid ads and the value of diversifying acquisition through organic channels.[47:18] Value capture and monetization: Phil explores strategies for optimizing conversion rates, pricing, and paywalls to increase revenue capture from free users.[55:45] What’s next for the Subscription Value Loop Calculator: Phil shares plans for enhancing the tool with better data, new filters, and expanded benchmarks in future versions.

On the podcast: estimating the revenue potential of an app, crafting an exit strategy, and why LTV is such a terrible metric.Top Takeaways:🎯 Finding the right market fit – Not all apps have billion-dollar potential, and chasing massive markets often means competing with big players. Instead, focus on markets where your app has room to stand out. By positioning yourself in a "Goldilocks zone"—big enough to scale but niche enough to avoid overcrowding—you’ll lay the groundwork for sustainable growth.📈 Portfolios over all-in strategies – Instead of putting all your effort into scaling one app, building a portfolio of smaller, successful apps can diversify risk and drive steady revenue. Portfolios give you the flexibility to test new ideas and spread your earnings across multiple use cases, avoiding the pitfalls of over-concentrating on one product.🔍 When to expand features or create a new app – Apps with focused, singular value propositions tend to attract and retain users better than those overloaded with features. Before adding more functionality, ask: Does this align with the app’s core mission? If not, consider launching a complementary app to avoid cluttering your existing product.🧪 Price testing without regrets – Effective price testing requires patience and precision. Run small tests, and use early retention patterns—such as trial-to-paid or monthly renewal rates—to model the impact on long-term subscribers. Always prepare for possible retention dips by planning worst-case scenarios to protect your bottom line.✍🏻 Set up for a strategic exit – If acquisition is your goal, build your app to be buyer-ready. Private equity and strategic acquirers look for apps with clean operations, predictable revenue, and scalable systems. Crafting a clear differentiation and avoiding operational mess increases your chances of attracting high-value offers and makes the process smoother.About Patrick Falzon👨‍💼 Co-founder of The App Shop, Patrick helps app developers build sustainable portfolios, optimize monetization, and prepare for strategic exits.📈 With extensive experience in app monetization and growth strategies, Patrick is focused on creating streamlined user experiences while identifying opportunities for sustainable scaling and market differentiation.💡 “A big market is great only if you can take a substantial or specific share of that market. If it’s so competitive that you can’t garner any market share, it’s not actually valuable to you."👋 Patrick on LinkedInResourcesThe App Shop websiteFollow Us:• David Barnard: https://twitter.com/drbarnard• Jacob Eiting: https://twitter.com/jeiting• RevenueCat: https://twitter.com/RevenueCat• Sub Club: https://twitter.com/SubClubHQEpisode Highlights[1:41] The story begins: Patrick’s career evolution — from investing in to operating at Mosaic Group.[7:59] A stand-out app: Why RoboKiller, an app for blocking spam calls and texts, stood out in Mosaic’s portfolio.[9:07] Evaluating market size: Mosaic’s framework for assessing an app’s revenue potential balances market depth with competition and user demand.[14:20] Tough markets to crack: Mosaic avoided saturated app categories (like VPNs and personal finance), due to high acquisition costs and competitive pressure.[19:36] Depth vs. breadth: How Mosaic decided whether to enhance existing apps or create new ones.[25:52] Portfolio strategies: Building a diverse portfolio of smaller apps, instead of scaling a single app, can reduce risk and increase sustainable revenue.[32:14] LTV pitfalls: Patrick stresses the importance of capping LTV projections and focusing on shorter payback periods to make realistic growth decisions.[39:20] Exit strategy: Aligning operational processes, profitability, and a clean setup improves the chances of a successful app exit.[49:12] Retain to sustain: Why user retention metrics are key to building durable, long-term revenue.[1:01:05] Good press: How Mosaic leveraged proprietary data to secure media coverage, boosting RoboKiller’s organic growth and user trust.

On the podcast: the power of user segmentation, executing bold strategic shifts, and why imaginary customer conversations are sometimes better than real ones.Key Takeaways:💡 Simplification drives growth - Alex shares how transitioning from a freemium to a free trial model simplified V1 Sports' monetization strategy, aligning better with their users and discovering new revenue opportunities.🤔 Rethink assumptions to uncover opportunities - Alex emphasizes the importance of questioning outdated business assumptions, using user feedback and internal discussions to refine strategies and reignite growth.📊 User segmentation unveils hidden value - By identifying key user needs, like connecting golfers with coaches, V1 Sports leveraged segmentation to create tailored offerings that boosted engagement and revenue.⏳ Bold decisions can pay off - Switching longstanding free features to paid access generated friction but ultimately led to a 90% revenue growth, proving that sometimes taking risks is necessary to drive business viability.🌐 Focus on ideal users for long-term success - Alex highlights the importance of catering to highly engaged users who find value in the product, ensuring sustainable growth while reducing churn from less committed users.About Alex Prasad👨‍💻 CEO of V1 Sports, a leading provider of video golf swing analysis software and seamless video lesson solutions for golfers and instructors.👥 Alex Prasad is committed to driving growth through bold strategic shifts, user segmentation, and simplifying complex monetization models to serve better the needs of both consumers and professionals in the golf industry.💡  "You can’t please everybody—much harder when those people are already in the tent and some may perceive it as you kicking them out because you’re changing the rules of the game."👋  LinkedInResources - AlexV1 Sports WebsiteFollow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights[2:10] Adapting for success: How V1 Sports, a 30-year-old technology company, became a leader in video golf swing analysis by adapting to market changes.[5:48] Trials and tribulations: Why V1 Sports switched from freemium to free trials, and the challenges it created.[10:32] Keep it simple: How simplifying monetization can lead to new revenue opportunities.[17:15] Bold bets and backlash: Asking long-time users to pay for previously free features and navigating the resulting backlash.[24:30] Segmentation wins: How V1 Sports identified key user needs, like finding a coach, to create tailored solutions and increase engagement.[30:22] Innovation meets tradition: The challenges of preserving legacy app features while modernizing your product to meet new user demands.[36:48] Critical feedback: The dreaded one-star review can be an opportunity to improve and grow your business.[43:10] Talking it out: How Alex uses hypothetical user dialogues to guide product and customer strategy decisions.[57:20] Know your audience: Alex emphasizes the importance of catering to ideal customers and avoiding the trap of chasing uncommitted users.

On the podcast: what’s currently working for apps on TikTok, how to create viral content, why you should try working with influencers who don’t have many followers.Key Takeaways:🔍 Getting noticed: How TikTok’s algorithm amplifies reach - TikTok’s “For You Page” prioritizes engaging content over follower count, so apps can go viral without a big audience.📈 E-commerce strategies that work for apps on TikTok - E-commerce brands have mastered quick, punchy content on TikTok, and app marketers can adopt similar tactics. Short tutorials, “top 5” lists, and problem-solution demos grab attention fast and build trust.🚀 Adding viral-ready app features for growth loops - Viral-ready features, like progress trackers or custom shareable visuals, give users a reason to promote the app. Highlighting milestones, achievements, or unique app insights adds a built-in social layer that drives organic growth.📝 Think like a TikTok producer, not a consumer - Scroll with intention. Save top content by category to keep your ideas fresh and aligned with TikTok trends.🧪 Testing app ideas and features on TikTok - Test app ideas and features on TikTok with waitlists and concept marketing to validate user interest before building.About Joseph Choi👨‍💼 Founder of the Viral App Founders Community, with a background in e-commerce marketing and a keen focus on helping app developers go viral, especially through innovative approaches on TikTok.📈 Joseph has a deep understanding of viral marketing and influencer strategies, emphasizing the value of working with “micro-influencers” or creators with smaller followings who often drive authentic engagement.💡 "On TikTok, it’s not about having a huge follower count; it’s about connecting with users through genuine, engaging content. Even a new account can achieve millions of views with the right approach."👋  Follow Joseph on X → https://x.com/JosephKChoi🗣️ Register for the upcoming webinar with Joseph.Subscribe to the podcast → https://www.subclub.coFollow Us:• David Barnard: https://x.com/drbarnard• Jacob Eiting: https://x.com/jeiting• RevenueCat: https:/x.com/RevenueCat• Sub Club: https://x.com/SubClubHQEpisode Highlights [5:12] Leverage with TikTok: Joseph explains why TikTok’s unique “For You” page allows even new accounts to reach massive audiences without needing followers.[11:35] Influencer shift: Why working with micro-influencers, or creators with smaller followings, can lead to higher engagement and more authentic content for apps.[18:43] TikTok Shop revolution: Joseph dives into how TikTok Shop’s affiliate model has changed the game for e-commerce, allowing products to reach audiences quickly with creator-driven content.[24:58] Crafting a viral hook: Apps that create emotional, relatable hooks gain traction, especially when leveraging TikTok’s algorithm to amplify visually appealing content.[32:12] Power of authenticity: How TikTok users value authenticity over polished content and what that means for brands looking to grow on the platform.[39:47] AI and content quality: Joseph discusses the intersection of TikTok’s AI and quality content, stressing that no algorithm trick beats a strong story and engaging format.[45:09] Effective CTAs on TikTok: Best practices for call-to-actions on TikTok, focusing on subtle prompts over traditional “link in bio” strategies.[53:20] Content inspiration: Joseph’s method of tracking viral content trends and adapting successful formats to keep app marketing fresh and engaging.