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The Hidden Profit Killer in Your Subscription Business (And How to Fix It) | Paul Chambers
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In this episode of The eCommerce Podcast, Matt Edmundson sits down with Paul Chambers, co-founder of SubSummit, to explore the counterintuitive strategies driving successful subscription businesses. Discover why making cancellation easier actually increases customer lifetime value and learn about the membership models creating lasting loyalty beyond basic discounts.
About Our Guest:
Paul Chambers is the co-founder of SubSummit, the world's largest conference exclusively dedicated to direct-to-consumer subscription businesses. With decades of experience in subscription commerce, Paul has helped countless brands transform their membership models to improve retention and customer loyalty.
Key Insights:
"The number of times I've heard from brands where it's like, as soon as we change the cancellation process, as soon as we reduce the friction... we saw immediate uptick in our customer lifetime value and long-term retention." - Paul Chambers
When customers feel trapped, they develop negative associations with your brand. Conversely, making cancellation frictionless creates trust and paradoxically increases loyalty.
Paul shared how Bottomless revolutionized replenishment with smart scales: "I have a scale that sits under our dog food container and I will tell you it works flawlessly. As soon as it's starting to get down, the next I see a shipment notification in my email and just a couple days later I have the next bag of dog food that's on my doorstep."
5 Membership Models That Actually Work:
- Frictionless Replenishment: Using technology to deliver products exactly when customers need them
- Tiered Membership Access: Creating aspirational levels that encourage increased spending
- Community-Based Membership: Building emotional connections through shared experiences
- Value-Added Services: Bundling complementary benefits that increase perceived value
- Gamified Loyalty Programs: Using achievement systems to maintain engagement
Resources Mentioned:
Connect With Us:
- Website:eCommercePodcast.net
- LinkedIn:Matt Edmundson
- Email:[email protected]
Join Us at SubSummit!
Both Matt and Paul will be at SubSummit this year. Check out subsummit.com to learn about their hosted program which offers free tickets and travel reimbursement!
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