Managing Price Increases in B2C Subscriptions

Reid DeRamus, formerly of Hulu, Crunchyroll, HBO Max, and Substack, joins CJ in this episode to discuss B2C business models and growth strategies. Reid sheds light on some of the profound evolutions he’s experienced in his career at the intersection of tech and media. The discussion dives into the nuances of price increases in B2C subscriptions—how they affect revenue growth, customer acquisition, and retention—and explores strategies for effectively communicating these changes. They examine the pitfalls of discounting, the pros and cons of annual plans, and the art of segmenting consumers who may be willing to pay more. Reid introduces the concept of “elevating the cohort floor” and emphasizes the importance of the initial subscription period for retention and conversion. The episode also tackles the paradox of "too healthy" metrics and why you should consider pairing your KPIs up. The podcast is not over until they touch on balancing advertising and subscription models, and discuss unique monetization lessons from platforms like OnlyFans, among others.

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FOLLOW US ON X:

@cjgustafson222 (CJ)

LINKS:

Growth Croissant - https://www.reidtandy.com

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TIMESTAMPS:

(00:00) Preview and Intro

(02:00) Sponsor – Vanta | RightRev

(04:40) Reid’s Career Path Through Evolutions in the Media World

(11:40) Price Increases for Revenue Growth

(15:14) Why Price Increases Impact Subscriber Acquisition More than Retention in B2C

(18:00) Sponsor – Brex | Planful

(20:25) Strategies for Price Increases Without Dropping Subscriptions

(24:32) Pricing B2C to Allow for Room to Discount

(25:52) Can Discounting Cheapen Your Brand

(29:26) The Pros and Cons of Pushing People Towards Annual Plans in B2C

(34:50) The Hierarchy of What Monetizes Best in Paid Subscriptions

(39:59) Targeting Consumers Who Are Willing to Pay More

(45:00) The Importance of the Initial Subscription Period for Retention and Conversion

(50:01) Why Your Health Metrics Can Be Too Good

(51:49) Paired Metrics: Growing Two KPIs at the Same Time

(54:08) Balancing Advertising and Subscription

(01:00:49) The B2C Business Application of OnlyFans

(01:04:35) Substack and the Value in Focus

(01:07:07) Interesting Emerging B2C Apps

(01:07:59) B2C Apps Becoming B2B Apps