How to raise prices (the right way) — Podcast with Reid DeRamus, Substack

Substack Growth PM Reid DeRamus highlights the paradox of having exceptionally high retention metrics, suggesting it might indicate underpricing or a lack of aggressive audience growth strategies. While raising prices can enhance customer lifetime value and revenue, it requires careful consideration of consumer sentiment and potential impacts on new user acquisition. DeRamus underscores the importance of delivering more value and implementing gradual price increases to avoid subscriber dissatisfaction. He offers retention improvement tips, such as focusing on acquisition in early stages and using cancellation prevention strategies like understanding user cancellation reasons and offering pauses or special offers. Introducing higher-priced tiers can serve as an alternative to raising existing prices, catering to different subscriber segments. Finally, DeRamus emphasizes the critical role of onboarding in the subscriber journey, suggesting that improved onboarding, combined with customer feedback through surveys, can enhance retention and drive revenue growth by solving customer problems more effectively.