Patrick Campbell: Why understanding Churn, LTV & Value Based Pricing is crucial to your store's success
Patrick Campbell (Profitwell CEO) joins us to discuss some of the metrics every ecommerce store owner should be calculating, should understand, and should monitor to understand revenue.
Growth is more revenue, not more customers. Yet, out of every 10 blog posts on growth, 7 are focused on acquisition, 2 are centered on retention, and only 1 is about pricing.
Patrick Campbell (Profitwell CEO) joins us to discuss some of the metrics every ecommerce store owner should be calculating, should understand, and should monitor to understand revenue.
What is value based pricing? How do you calculate the LTV (LifeTime Value) of your customers? Why do people still calculate churn wrong? These are all things ecommerce merchants should be intimately familiar with, even more so if you run a subscription ecommerce business.
"You need to understand Churn, LTV, & Value Based Pricing to give your store a fighting chance of success."
- Patrick Campbell, CEO ProfitWell
Some topics we discuss are:
- What is value based pricing, and how should ecommerce merchants think about it?
- How should you calculate churn and LTV?
- Why do customers really churn, or cancel subscriptions?
- Free trials, try before you buy, freemium, annual vs monthly billing... How does a store decide the best approach to all these options?
Show notes, links & resources
About the guest
Patrick Campbell
CEO, ProfitWell
Patrick Campbell is the Co-Founder and CEO of ProfitWell, the industry standard software for helping companies like Atlassian, Autodesk, Meetup, and Lyft with their monetization (through Price Intelligently) and retention strategies. ProfitWell also provides a turnkey solution that powers the subscription financial metrics for over eight thousand subscription companies (it’s free and plugs right into your billing system). Prior to ProfitWell Patrick led Strategic Initiatives for Boston based Gemvara and was an Economist at Google and the US Intelligence community.