The Secret Power of ‘Read It Later’ Apps and How to Build a Successful Consumer Subscription Business

The Secret Power of ‘Read It Later’ Apps and How to Build a Successful Consumer Subscription Business

Reading is often seen as a leisurely activity, a way to escape reality and immerse ourselves in the thoughts of others. But what if I told you that reading is actually a source of competitive advantage in the world? In today's fast-paced society, the ability to sit quietly and direct focused attention for sustained periods of time has become increasingly scarce and therefore, valuable.

Google conducted a study and found that increasing the number of search results per page from 10 to 30 only took half a second longer, yet it caused 20% of people to drop off. Our attention spans are dwindling, making it more difficult to engage with long-form content. The fear of cognitive dissonance, the unease we feel when faced with unfinished tasks, prevents us from even starting a long article or book.

This is where 'Read It Later' apps come into play. These apps, such as Pocket, allow us to save articles, blog posts, and other content to read at a later time. They act as a task manager for our reading materials, helping us organize and prioritize what we consume. But not all 'Read It Later' apps are created equal. Pocket, for example, is not ideal for organizing highlights and key passages. Instead, it is better suited for saving and archiving content.

So how can these apps help us increase consumption of long-form content and better filter what we read? By utilizing these apps, we can create a pool of options drawn from a longer time period. This allows us to make decisions from a higher perspective, aligning our choices with what truly matters to us. Instead of mindlessly consuming information, we can be intentional about what we choose to read and learn from.

Moreover, these apps enable us to assimilate and build on the ideas of others. Ideas are powerful agents of change, and when arranged in highly cross-referenced networks, they become even more impactful. The human brain is the only tool capable of creating and accessing these networks on demand. By using 'Read It Later' apps, we can curate a collection of ideas and insights from various sources, allowing us to learn faster and incorporate the lessons learned by others.

Now, let's shift gears and explore how to build a successful consumer subscription business. Single-product solutions often struggle with long-term retention without the network effects that come with a larger user base. If network effects don't make sense for your product, launching new products can help monetize your existing customer base and open up new customer segments.

Take Calm, for example. They were able to scale their Sleep Stories product, which appealed to a wider market than their meditation offering. This not only raised the retention rate of their meditation customers but also attracted new segments who were less interested in meditation. By diversifying their product offerings, Calm was able to ease the burden on customer acquisition, increase monetization rates, and improve retention.

Additionally, bundling subscription models can be a powerful growth driver. Spotify, for instance, saw tremendous success with playlist sharing. Lists were shared among friends and even publicly on the internet, helping to increase user engagement and retention. Spotify and Hulu also joined forces to offer a bundled subscription, targeting new audiences and enhancing retention for both products.

Another strategy to consider is expanding into the B2B market. By creating a B2B offering, you can tap into a new customer base and leverage a different acquisition loop in sales. This can result in acquiring hundreds to thousands of people at the same time within companies. Headspace and Calm have successfully transitioned from consumer roots to B2B models, further expanding their reach and revenue streams.

Building a successful consumer subscription business is not easy, but when it works, the outcomes can be tremendous. Just look at the valuation of companies like Duolingo, Spotify, and Netflix. These numbers rival even the best B2B subscription companies. So, keep building, iterating, and finding new ways to monetize and retain your customer base.

In conclusion, 'Read It Later' apps and consumer subscription business models have their unique advantages. Utilizing 'Read It Later' apps can help us increase consumption of long-form content and assimilate ideas more efficiently. On the other hand, building a successful consumer subscription business requires diversification, bundling, and exploring new markets. By incorporating these strategies, you can enhance your competitive advantage and drive long-term success.

Actionable Advice:

• 1. Embrace 'Read It Later' apps to curate and prioritize your reading materials. Use them as a tool to make intentional choices about what you consume.

• 2. Consider diversifying your product offerings to better monetize your existing customer base and attract new segments. Look for opportunities to expand into related markets or offer bundled subscriptions.

• 3. Explore the B2B market as a way to acquire a larger customer base and increase revenue. Identify how your product or service can solve a problem for businesses and leverage a different acquisition loop in sales.

Remember, reading and building a successful consumer subscription business are both journeys. Take the time to immerse yourself in the thoughts of others and learn from their experiences. And as you navigate the world of business, be open to new opportunities and strategies that can propel your company forward.