A CMO Confidential Interview with Dr. Dan McCarthy, Professor of Marketing at Maryland. Dan returns for the third time to share research on the food delivery business and how marketers can "bend the growth curve" by implementing a subscription model. He discusses the engineering behind various subscription models and why most marketers should "at least" consider these programs. Key topics include: the difference between "promiscuous" and "heavy" buyers; balancing the "give versus the get," and how AI may drive the implementation of more models. Tune in to hear why charging for membership is a good idea.
Are subscription models the future of business growth? 📦 In this episode of CMO Confidential, former CMO Mike Linton sits down with Dr. Dan McCarthy, a renowned marketing expert, tenured professor at the University of Maryland, and co-founder of Theta Equity Partners, to uncover "The Truth About Subscription Models." Tune in to hear how subscription programs like DoorDash’s DashPass and Postmates are reshaping customer behavior, boosting customer lifetime value (CLTV), and driving competitive advantages in today’s market.
Key topics include:
- The fundamentals of customer lifetime value (CLTV) and its role in subscription success.
- Insights from Dr. McCarthy's groundbreaking research on the impact of subscription models on market share and consumer loyalty.
- How high-frequency customers, competitive dynamics, and strategic design affect subscription profitability.
- The surprising effects of subscription models on competitors and adjacent industries like grocery and dining.
- Practical advice for businesses considering implementing a subscription model.
Whether you're a marketer, advertiser, or business leader, this episode offers actionable insights into how subscription models can bend the curve of customer retention and profitability. Learn how AI and evolving consumer behavior are shaping marketing strategies in this dynamic space.
Subscribe to CMO Confidential for more expert insights, and stay tuned for future episodes featuring in-depth discussions on marketing strategies, leadership, and industry trends. Don’t forget to like, comment, and share to keep the conversation going!
#growthhacking #digitalmarketing #conversionrateoptimization #marketinganalytics #customerretention
CHAPTERS:
00:00 - Intro
01:14 - Dan McCarthy Insights
02:38 - Customer Lifetime Value (CLTV)
05:59 - Food Delivery Trends
09:28 - Dan’s Key Findings
13:16 - Postmates Subscription Model Analysis
17:40 - Subscription Model Winners and Losers
20:09 - Late Entry to Subscription Models
23:52 - Industries at Risk with Subscriptions
26:26 - Emerging Industry Sleepers
27:20 - AI Impact on Subscription Models
31:33 - Practical Advice for Subscriptions
35:36 - Acknowledgments and Props
35:40 - Like & Subscribe
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