🤑 A Better Value Proposition

Evolving the Value Prop.

The reason your customers initially purchased is unlikely to be the reason they’re still subscribed. Lots of effort is made to develop a product value proposition that’s compelling for the first purchase, but in the world of recurring revenue, we need a value proposition that evolves along with the customer’s journey beyond the acquisition and through onboarding, engagement, expansion, retention and further.

In our recent SubscriptionWorks AMA with Micaela Shaw, CMO of Embodied, she really leaned into this critical strategic consideration in support of a more sustainable growth program, and provided this fantastic example from the real world…

Q: Does a time-based value proposition vary by length of subscription term (monthly, annual, etc) or is it separate?

Micaela: Ideally, you’ll want the pace of a customer’s “progress” milestones to match the pace of their payment. That’s why if you tell Noom you want to lose weight by the end of summer, they’ll propose a 5 month plan to get you there.

Q: In that case, how would you evolve the value prop after month 5?

Micaela: You've got to get the customer to give you a new goal! In Noom, the strategy is consistently asking customers about what's coming up in their calendar-- weddings, vacations, etc.

I love this example and the practical application it has for so many other product types, when we understand the customer’s journey and their goals along the way we can speak to those goals directly where and when it makes sense — an absolute fundamental of the customer/product Goal Alignment that we develop in our growth programs and teach in our workshops. It’s core to fully leveraging what it is that makes subscribers better customers and a recurring revenue model more sustainable.

Who would you like to see in an upcoming AMA?

This year’s AMA series is off to a great start with powerful peer learning, and there’s more coming right around the corner from AARP, The Washington Post, One Medical and others. We’re always looking for more peers with experience to share, so if you know of someone, perhaps even yourself, who has unique and valuable insights to share in Slack-based Q&A format, hit reply and let me know so we can start the conversation.

Thanks and be well
- Matt

P.S. Don’t miss it - tomorrow registration officially opens for the next Workshop on HoK’s Subscriber Growth Framework. Attendees have had great things to say and 100% recommend it to their colleagues. For those of you reading this far, here’s a sneak peek to learn more and register early (also, reply directly to me if you need tuition assistance).

*Not a SubscriptionWorks member? Learn more about joining future AMAs, WoWs and networking with subscription product peers here.