About this episode
On the podcast, I talk with Michael and Mark about the boom in hardware-enabled subscriptions, why nothing worked until they stopped optimizing and started building a better product, and how they doubled their price to $79 even though the data said they could charge more.Top Takeaways:? Hardware-enabled subscriptions need daily usage to work Devices that sit unused make subscription value harder to justify, but products that become the heartbeat of daily routines (like a family calendar) naturally create subscription demand.? Stop optimizing when you should be buildingLimited resources force careful prioritization, and sometimes the biggest wins come from building genuinely valuable features rather than running endless conversion experiments.? Price based on customer emotion, not just dataTesting showed $99 would maximize revenue, but qualitative research revealed $79 felt fair while $99 approached "disgust territory," so they chose the lower price for long-term goodwill.?? Build a great product before scaling marketingSkylight tried to scale Calendar in 2021-22 but the product wasn't ready, leading to wasted marketing spend and false negatives until they focused on getting to 40+ NPS first.?? Retail partnerships are the ultimate influencerBeing in Costco and Best Buy provides a stamp of quality that can't be underestimated, and multi-channel distribution drives higher overall growth despite lower subscription attach rates in some channels.About Michael Segal & Mark Ungerer:? CEO, Skylight? Michael Segal is the CEO of Skylight, a family tech company best known for its digital frames and calendars. Michael, a former venture capitalist, brings a unique perspective to Skylight’s growth strategy, focusing on balancing growth with profitability. He shares anecdotes about Skylight’s journey from hardware to subscription models, the importance of understanding customers' emotions about pricing, and how the team navigates the challenges of scaling both hardware and software.? LinkedIn? CPO, Skylight? Mark Ungerer is the Chief Product Officer at Skylight, where he leads product strategy, development, and design. With a keen focus on creating seamless user experiences, Mark discusses Skylight’s approach to subscriptions, how they test and refine features based on user feedback, and the key role retail partnerships play in building trust and credibility. ? LinkedInFollow us on X: David Barnard - @drbarnardJacob Eiting -
