Benchmarks are a jumping-off point, not the end-all, be-all — Phil Carter, Elemental Growth

This week on the Sub Club podcast, we spoke with Phil Carter, an independent growth advisor and angel investor who helps consumer subscription companies scale. Phil shared his Subscription Value Loop framework, tips for using benchmarks effectively, and the importance of balancing data with judgment in growth decisions.

What is the Subscription Value Loop?

Phil’s Subscription Value Loop framework helps consumer subscription businesses achieve sustainable growth. It breaks the subscription lifecycle into three key stages: value creation, value delivery, and value capture. By focusing on these areas, businesses can fine-tune their products and strategies to drive consistent, compounding growth.

Phil also introduced the Subscription Value Loop Calculator, a tool designed to measure performance across these stages. By integrating data, the calculator highlights gaps and guides prioritization of growth opportunities. Companies that excel in one stage while maintaining steady performance in others often see the strongest results.

Using benchmarks without over-reliance

Benchmarks offer valuable insights, but Phil emphasized that they are just a starting point, not the answer. Benchmarks highlight areas where businesses lag behind peers and uncover opportunities for improvement. However, no company excels across every metric, and over-reliance on benchmarks can mislead decision-making.

Phil shared how he works with clients to identify challenges in value creation, delivery, or capture. By combining benchmark data with a deep understanding of each business, he creates tailored strategies that play to their strengths.

The art of balancing judgment and data

While data informs decisions, Phil highlighted the crucial role of judgment. He gave examples of companies over-optimizing for specific metrics—like trial start rates or churn—at the expense of the bigger picture. Effective growth strategies require intuition, product knowledge, and the insights provided by tools like the Subscription Value Loop Calculator.

Phil also discussed how metrics evolve with a company’s maturity. Early-stage businesses often prioritize efficient user acquisition, but as they grow, sustainable strategies require stronger retention and monetization. This means companies must regularly reevaluate their metrics and strategies.

In summary

By using frameworks like the Subscription Value Loop, using benchmarks as a guide—not a crutch—and blending data with intuition, businesses can create subscription models that thrive in the long term.

Listen to the full conversation with Phil Carter to learn practical strategies for scaling your subscription business.