Subscription Stories: True Tales from the Trenches Controversial Topics in Subscription Pricing with Mather CEO Matt Lindsay
Feb 5, 2025
Matt Lindsay, founding partner of Mather Economics and a subscription pricing whiz, dives into the complexities of subscription pricing. He discusses the tightrope of balancing revenue and customer satisfaction. Key topics include the impact of introductory offers, strategies for effective price increases, and handling subscriber cancellations. Lindsay also emphasizes the importance of transparency in pricing and the role of consumer behavior in subscription dynamics. His insights offer invaluable guidance for anyone navigating the tricky waters of subscription models.
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Subscription Pricing Elasticity Over Time
- Subscription pricing optimizes for lifetime value through a series of price points over time.
- Price elasticity is highest at initial subscription and decreases as the subscription becomes habitual.
Price Is Rarely Main Churn Cause
- Most churn is not caused by price but by other factors like involuntary churn.
- Dropping price slightly often doesn't strongly prevent churn if engagement is low.
Keep Pricing Simple and Transparent
- Keep subscription pricing simple and transparent to build consumer trust.
- Avoid making cancellation difficult, as easy cancellation can foster goodwill and potential return customers.