How I would grow Skio – MovieUpdates

Keeping customer churn low while building a customer base

“Ski helps brands sell subscriptions on Shopify without pulling their hair out,” Skio founder Kennan Davison explained as we sat down with him to understand how the product works, how it’s grown to date, and what challenges the business faces. faced.

Skio was launched in April 2021 with the goal of eliminating the hacky solutions that other subscription apps for Shopify have used. The company lets its customers use Shopify checkout natively along with a passwordless login to provide a seamless experience for their customers.

In the beginning, like many startups, Skio had to do things that don’t scale to acquire its first customers. Kennan regularly visited direct-to-consumer communities on Twitter to find upset users of his competitor, ReCharge. After acquiring the first few customers, Skio created case studies to show how it improves the subscription process.

As the company started acquiring more customers, word of mouth helped the company show how much improvement Skio is over ReCharge (and other competitors). Given the number of incoming requests the company has received to demonstrate Skio, it is clear that the product is market-fit.

Now Skio has over 100 repeat customers, including brands like Bev, Muddy Bites, Doe Lashes, Krave Beauty and more. The company has almost no churn and wants to keep it that way. To do that, the team’s goal is to continue recruiting users who are dissatisfied with their current subscription solution.

How can Skio continue to grow this customer base with low churn? That’s what we’re going to explore in this article.

This post will share why some growth strategies are better than others, introduce growth concepts and explain our approach. The goal is to give you the insights needed to match a growth strategy with your own startup and apply the content right away.

Before we begin, here’s a quick look at Skio:

  • Industry: Ecommerce.
  • Business model: Recurring Subscriptions.
  • Income source: SaaS costs + transaction costs.
  • Price point: $399/month + 1% transaction fee + 20 cents.

Acquisition strategy

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

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

How to choose a growth strategy

There are three ways startups can acquire customers: inbound, outbound, and viral.

viral growth

Viral growth occurs when awareness of a product is spread by customers who use 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 growth and referrals are the most common virus-based acquisition strategies.

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

We use a simple scoring method to assess whether a viral growth strategy works for Skio. Each factor is rated low, medium, or high based on its probability of success.

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

For an invite to be relevant, Shopify store owners using subscriptions must invite other Shopify store owners using subscriptions. While founders are generally well-connected, it’s unlikely they’ll know enough people to fit into that plan for the number of invites sent to reach the critical mass needed for viral growth.

Score: low.

Conversion Rate: What percentage of those invites will convert someone into a new user?

Show Love ❤️