The Subscription Value Loop: A framework for subscription app growth

Phil Carter's Subscription Value Loop is a comprehensive framework designed to drive sustainable growth in consumer subscription businesses by aligning core product, growth product, and marketing teams around a central value promise. This framework, which defines growth through Value Creation, Value Delivery, and Value Capture, was developed from Carter's experience in venture capital and product leadership roles at companies like Quizlet. Value Creation focuses on developing a product that is robust, rapid, repeatable, and revenue-generating, ensuring it meets or exceeds user expectations and maintains continuous engagement. Value Delivery emphasizes efficiently connecting users to the product’s value through organic growth strategies, particularly important as traditional paid marketing becomes less effective due to changes like Apple's App Tracking Transparency. Value Capture seeks to optimize subscription revenue through strategic pricing, packaging, paywalls, payments, and promotions, ensuring the business can reinvest in growth while aligning with users’ willingness to pay. Carter's framework aims to systematically address growth bottlenecks, align team responsibilities, and prioritize resource allocation, fostering a holistic approach to nurturing and scaling subscription apps.