Winning Strategies in Consumer Subscription: Efficiency and Embracing Unexpected Users

Winning Strategies in Consumer Subscription: Efficiency and Embracing Unexpected Users

In the world of consumer subscription, companies have found success by focusing on efficiency and adapting to unexpected users. By staying lean and cost-conscious, these companies have been able to navigate the challenges of finding strong product-market fit and beyond. This article explores the common thread of efficiency amongst successful consumer subscription companies and the importance of embracing unexpected users.

Efficiency: The Key to Success

One of the most striking patterns observed across successful consumer subscription companies is their obsession with efficiency. They understand the importance of staying small, keeping costs down, and striving for profitability. These companies often start with a team size of under 10, working long hours in tight spaces to maximize productivity. The constant questioning of every outgoing dollar helps them develop hacking skills and a growth-driven culture.

For example, at Noom, the founders and team members were committed to keeping the company lean until they achieved strong product-market fit. This involved working long hours in a one-bedroom apartment in San Francisco and prioritizing revenue over rapid growth. This focus on efficiency allowed them to fund patient development and growth over the years.

Embracing Unexpected Users: A Game Changer

In addition to their obsession with efficiency, successful consumer subscription companies have also embraced unexpected users as a key driver of their success. These companies understand that the broader world may not fully grasp the potential of their product until it is shown at scale. By keeping their team size and cost structure small, they can focus on funding patient development and growth while demonstrating the value of their offering to a larger audience.

Take, for instance, the founders of the biggest B2C subscription companies, such as Noom, Grammarly, Duolingo, Calm, and Spotify. Interestingly, all five of these founders are immigrants, hailing from different countries. This diversity of experience and perspectives has allowed them to identify and cater to the needs of unexpected users, leading to their exceptional growth and success.

Actionable Advice for Consumer Subscription Success

• 1. Stay Lean and Focus on Revenue: As a consumer subscription company, prioritize efficiency by keeping your team size small and questioning every outgoing dollar. Focus on generating revenue over rapid growth until you have achieved strong product-market fit.

• 2. Embrace Unexpected Users: Be open to unexpected users and their needs. Take the time to understand if catering to these users can bring about changes to your business's revenue structure or present opportunities for growth.

• 3. Demonstrate Value at Scale: Consider keeping your team size and cost structure manageable to fund patient development and growth. Showcasing the potential of your product to a larger audience can be a game changer for your business.

Conclusion

In the competitive world of consumer subscription, efficiency and embracing unexpected users have emerged as winning strategies. By staying lean and cost-conscious, companies can navigate the challenges of finding strong product-market fit and beyond. Additionally, recognizing the value of unexpected users and their unique needs can open up new avenues for growth and success. By incorporating these strategies and taking actionable steps, consumer subscription companies can increase their chances of winning in this dynamic market.