one of the nice things about some of the recent substack growth initiatives is getting so many new subscribers from recommendations, with no acquisition cost.
you're spot on - CLV is not scripture, it is a concept that you have to understand in order to be able to build your business. Also, knowing your CAC certainly helps as well, and there should be a delta... :)
It's crazy how reducing churn is actually so much about first-impression optimization and community management. If Substack could make community development a unique value proposition, starting a Newsletter would feel like a no-brainer.
In theory Substack "knows" what the CLV of my Customers are, or can pull the data from Stripe for me. So if I raised my paid sub price from 8.00 to $12 it could tell me how much more I could expect from my readers if I am thinking paid subs is how I want to maximize my ROI.
If 30% of my potential readers churn in the first three months, then Substack Boost needs to address that window the most. I actually think it's a segmentation problem.
Great insights on metrics.
This is exactly the type of content I was looking for. Thanks, Reid!
P.S. The name "Growth Croissant" is genius. (If anyone's wondering, look up what "croissance" means in french)
one of the nice things about some of the recent substack growth initiatives is getting so many new subscribers from recommendations, with no acquisition cost.
Very useful, Reid. Thank you very much.
This was very helpful. Thank you!
you're spot on - CLV is not scripture, it is a concept that you have to understand in order to be able to build your business. Also, knowing your CAC certainly helps as well, and there should be a delta... :)
It's crazy how reducing churn is actually so much about first-impression optimization and community management. If Substack could make community development a unique value proposition, starting a Newsletter would feel like a no-brainer.
In theory Substack "knows" what the CLV of my Customers are, or can pull the data from Stripe for me. So if I raised my paid sub price from 8.00 to $12 it could tell me how much more I could expect from my readers if I am thinking paid subs is how I want to maximize my ROI.
If 30% of my potential readers churn in the first three months, then Substack Boost needs to address that window the most. I actually think it's a segmentation problem.