In today's consumer subscription market, winning requires a combination of factors that contribute to long-term success. While each company has its unique strategies and approaches, there are common patterns that emerge when looking at successful businesses in this space. Two key patterns that stand out are an obsession with efficiency and the hierarchy of engagement.

In today's consumer subscription market, winning requires a combination of factors that contribute to long-term success. While each company has its unique strategies and approaches, there are common patterns that emerge when looking at successful businesses in this space. Two key patterns that stand out are an obsession with efficiency and the hierarchy of engagement.

The first pattern that we see across every successful consumer subscription company is an obsession with efficiency. These companies prioritize staying small, keeping costs down, and focusing on profitability. They understand the importance of staying lean until they find strong product-market fit and beyond. By keeping their team size under 10 and working long hours in a small space, these companies are able to sharply question every outgoing dollar.

This obsession with efficiency also drives the development of hacking skills. Growth marketers in these companies are responsible for all spending and constantly prioritize ruthlessly. This focus on efficiency and cost control helps define the growth culture within the organization. Noom, for example, credits their early focus on staying small and efficient as a key factor in their success.

Another interesting observation is that many of the founders of the biggest B2C subscription companies are immigrants. Noom and Grammarly's founders are from Ukraine, Duolingo's founder is from Guatemala, Calm's founder is from the U.K., and Spotify's founder is from Sweden. This highlights the diversity and global nature of the consumer subscription market, as well as the unique perspectives and insights that immigrants bring to the table.

The second pattern that emerges is the hierarchy of engagement. Sarah Tavel, in her Medium article, expands on this concept. The hierarchy of engagement is a framework that helps businesses understand how to engage and retain customers at different stages of their journey. It consists of four levels: attention, participation, engagement, and monetization.

At the first level, attention, companies aim to capture the user's interest and make them aware of their product or service. This can be done through various marketing channels and tactics. Once the user is aware of the product, the focus shifts to participation. Companies encourage users to take action, whether it's signing up for a free trial or creating an account. This level of engagement is crucial in moving users further down the hierarchy.

The third level, engagement, is where the magic happens. Companies strive to create a product or service that keeps users coming back for more. This can be achieved through personalized experiences, valuable content, and ongoing communication. The goal is to build a loyal and engaged user base that sees the value in the subscription offering.

The final level, monetization, is where the business generates revenue from its engaged user base. This can be through subscription fees, in-app purchases, or other monetization models. The key is to provide enough value and benefits to justify the cost of the subscription.

Combining the patterns of obsession with efficiency and the hierarchy of engagement, we can derive actionable advice for winning in the consumer subscription space.

1. Stay lean and focus on revenue over growth, at least until you have found product-market fit. This means keeping your team size small, questioning every outgoing dollar, and prioritizing profitability. By staying efficient, you can fund years of patient development and growth.

2. Embrace diversity and unique perspectives. The success of immigrant founders in the consumer subscription market highlights the value of different backgrounds and experiences. Seek out diverse perspectives within your team and leverage them to drive innovation and growth.

3. Implement the hierarchy of engagement framework. By understanding the different levels of engagement and focusing on capturing attention, encouraging participation, fostering engagement, and monetizing effectively, you can create a strong foundation for long-term success in the consumer subscription market.

In conclusion, winning in the consumer subscription space requires a combination of factors, including an obsession with efficiency, the hierarchy of engagement, and embracing diversity. By staying lean, focusing on revenue, and implementing a framework that prioritizes engagement and retention, companies can position themselves for long-term success in this competitive market.