“you’re not buying replacements, you’re buying the thing you actually want to consume.”Ĭapitalizing on existing purchasing and usage habits through subscriptions translates into recurring revenue, thus increasing CLV.Ĭontributes to success: Quip’s simple product design results in better aesthetics, and reduced manufacturing cost Source: This is similar to what Bolt VC calls the “Keurig” business model ( article). In addition, refills only costs a small fraction of the original investment (20%), unlike razor-and-blade models which have negative associations in users’ mind. water pitcher filter or printer cartridges). This is different from pushing product subscriptions onto users who never used to buy into that category to begin with (e.g. What’s important to note is that the subscription, and specifically the “refills”, fit in a mental model that the user already has: buying a new toothbrush every few months. Through refill plans, Quip replaces the need for consumers to remember when to buy the next tube of toothpaste or toothbrush. Quip caters to habits by removing the mental load required for users to remain stocked up on supplies. Brushing one’s teeth is definitely an example of such a habit. It’s a behavior that is repeated every day, and multiple times a day. One sure-way to increase lifetime value of customers is to build consumable products tied to user habits. I’ll go over some aspects of the product that contribute to its success, and others that make success challenging.Ĭontributes to success: Quip is built around user habits, unlocking higher customer lifetime value (CLV) Having tried the product, I’ll share my product manager view on it. It took my Significant Other multiple attempts to convince me to try the Quip, an electric toothbrush that distinguishes itself with its unique design and affordable price. Especially when my tried-and-true ways work just fine. It’s with a sense of guilt that I admit: while I work in tech, I’m not an early tech adopter. Disclaimer: All my posts represent personal thoughts, knowledge, and opinions not those of companies I work in.
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