How is ModernLTV different?

Compare ModernLTV to alternative solutions and see what's right for your business.

Zack Babin
February 24, 2024
4
minutes

As a B2C subscription business, maximizing retention and LTV are the name of the game. In today's environment, the tech stack has gotten increasingly complex and businesses are inundated with different solutions to manage and utilize customer data. This trend has created highly fragmented sources of data that have made it harder than ever to understand and retain customers. In light of this challenge, our team of experts have provided a high-level analysis on the various solutions in the market and how ModernLTV fits into the ecosystem. With this, you can start to identify the right solution(s) for your business.

vs. Customer data platforms (CDPs)

Example: Segment, Tealium, HighTouch, Amperity

While these platforms can serve as the source of truth for your customer data, they offer limited to no predictive intelligence to combat churn and require ongoing engineering support.

PROs

  • Unifies all your customer data in one place
  • Low code integration
  • Integrates with all downstream tools

CONs

  • Requires on-going engineering resources
  • Focused on identity resolution, not intelligence
  • Cost increases as customer base scales

vs. AI / ML platforms (MLaaS)

Example: Pecan AI, Retina AI, Stay AI

These platforms offer AI/ML models as a service, allowing data teams to eliminate the time-consuming steps of building and training a model and focus on the aspects that differentiate their product.

PROs

  • Increases speed of model development
  • Access to high performance, battle-tested models
  • Improves productivity of data science teams

CONs

  • Built for highly technical users
  • Onboarding requires time & development
  • Limited utility or application across business

vs. Retention tools (RaaS)

Example: Butter Payments, Churn Buster, RedFast, FlexPay

These platforms do offer value-added solutions for specific types of customer churn (e.g. payment failures), but have limited predictive capabilities that allow you to combat churn before it happens.

PROs

  • Low code integration
  • Offer configurable dunning logic
  • Whitelabel UI for cancellation flows

CONs

  • Targets payment failures, a small percentage of churn
  • Limited insights to predict churn before it happens
  • Requires engineering resources

vs. Subscription management (SSaaS)

Example: Stripe Billing, Recurly, Recharge, Bold

Every business needs to collect and process payments and many subscription businesses choose to layer on Recurly, Recharge, etc to handle all the subscription-related functionality. That said, while they provide off-the-shelf payment recovery solutions, they don't have nearly the range of functionality to comprehensively address customer churn.

PROs

  • Handles all subscription management
  • Source of truth for customer churn
  • Off-the-shelf payment recovery features

CONs

  • Requires engineering resources
  • Focused on payment infrastructure, not intelligence
  • Handles payment failures, a small percentage of churn

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