Migrate your subscription to Bold and get 6 months FREE

Patrick Campbell - Why understanding Churn, LTV & Value Based Pricing is crucial to your store's success

September 17th, 2020 51:45 mins.

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.

Topics Discussed

  • 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?

Our guest

Patrick Campbell photo

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.

Full transcript

Jay Myers: Welcome to this week’s episode of ‘Own Your Commerce’; I’ve been trying to track down our guest today for a few weeks maybe a little over a month, I’m not sure but I finally got him here. It’s Patrick Campbell, he’s the CEO of ProfitWell; a lot of you may have heard of his company, it’s been growing quite well lately and we’ve done a little bit of work with similar clients. We’ve been on webinars together in the past and this guy knows his stuff when it comes to pricing, churn, LTV and I would say pretty much everything that matters when it comes to building a sustainably profitable company. Patrick, I think this is your quote, I don’t know if you call it a quote or a stat; one of your eBooks it said, “Growth is more revenue, not more customers.”