May 26, 2022

Helps ski brands Sell ​​Shopify subscriptions without pulling your hair out,” Skio founder Kenan Davison explained how the product works, how it has evolved to date, and what challenges the business has faced. had to face.

Skio was launched in April 2021 with the goal of eliminating hacks used by other Shopify subscription apps. The company allows its customers to seamlessly use Shopify Checkout with passwordless login to ensure a seamless experience for their customers.

In the beginning, like many startups, Skio had to do things that weren’t big enough to get their first customers. Kennan regularly visited consumer-facing communities on Twitter to find problematic users of his rival Recharge. After acquiring the first few customers, Skio created case studies to show how it improves the subscription process.

As the company grew in customer numbers, word of mouth helped show the company how much better Skio was than Recharge (and other competitors). Looking at the number of inquiries the company is getting to showcase Skio, it’s clear that the product is a good fit for the market.

Skio now has over 100 loyal customers, including brands such as Bev, Muddy Bites, Doe Lash, Krav Beauty and more. The company has almost no employee turnover and wants to keep it that way. To do this, the team intends to continue recruiting users who are unhappy with their current subscription solution.

How can Skio continue to expand its low churn customer base? This is what we will explore in this article.

In this post, we’ll explain why some development strategies are better than others, introduce development concepts, and explain our approach. The goal is to provide you with the information you need to align your growth strategy with your startup and get your content up and running quickly.

Before we start, let’s take a look at Skio:

  • Industry: Electronic commerce.
  • Business model: Recurring Subscriptions.
  • source of income: SaaS cost + transaction cost.
  • Price matters: $399 per month + 1% transaction fee + 20 cents.

acquisition strategy

As mentioned earlier, Skio’s target customers are current Recharge users, especially those who are not happy with it. Skio charges both the monthly subscription cost and the transaction cost.

To increase Skio’s revenue, we need to increase the total number of paying customers who subscribe to the app. These customers should have a low churn rate, meaning that the most frustrated Recharge customers will be recruited before we target Shopify owners more broadly.

How to choose a growth strategy

Startups can attract customers in three ways: inbound, outbound, and viral.

viral growth

Viral growth occurs when product information is shared by customers using that product. Slack and TikTok are great examples of viral products as users send invitations to others to join, and the more users on the platform, the more valuable it is. Product-driven development and referrals are the most common virus-based acquisition strategies.

There are three key factors to consider when evaluating whether viral growth will work for your startup.

We use a simple scoring method to evaluate if the viral growth strategy for Skio is working. Each factor is rated as low, medium or high depending on the likelihood of success.

Invitations: How many invitations does each user send to non-users?

In order for the invite to be valid, Shopify store owners using a subscription must invite other Shopify store owners using a subscription. While the founders are generally well-connected, it’s unlikely that they know enough people to fit into this plan in terms of the number of invitations sent to reach the critical mass needed for viral growth.

Rating: low.

Conversion Rate: What percentage of these invitations will convert to a new user?

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