If you’re looking to scale subscriptions efficiently, your tech infrastructure has to be rock solid.
That’s why Matt Kelly, Founder of Space Goods, utilizes Skio as a steady foundation as his subscription-based, next-gen wellness brand enters hypergrowth. We sat down with Matt to learn why he trusts Skio to power his biggest revenue driver. We dive deep on:
- Why subscription is essential to the brand’s rapid growth
- Skio’s seamless migration flow and proactive support
- Doubling subscription with Skio’s custom analytics
“Subscriptions are a huge part of our business, so we need them to go smoothly. We also need good vendor support as a startup. Skio does both of these things.”
Onboarding with Skio: Social Proof and a Low-Lift Migration
From the get-go, Matt knew he wanted Space Goods to be a primarily subscription-based and easily consumable brand.
Matt saw numerous fellow DTC founders hyping up Skio - and as he highly values the opinions within his community of eCom leaders, he made the switch. After launch, changing/migrating the subscription software is always a tricky issue. Especially because of the following two things:
- There are so many vendor options cropping up in the subscriptions space
- Every migration typically requires a ton of lift (in cash, engineering, admin, etc.)
However, their team quickly came around and moved forward with Skio — for two new reasons:
- Startups know how to support startups — Matt instantly loved the fact that, as a startup themselves, the Skio team could understand and predict Space Goods' growing pains. In his words: "Skio’s team actually cares about us – I could sense that right away.”
- A low-lift migration — Onboarding with Skio was surprisingly effortless, as their team readily provided any support Space Goods needed to make the jump.
“Skio felt super personable. They’re also a startup, so you can tell they actually care about us. The support has been great, and the migration was fluid.”
Skio’s Growth Features: Analytics, Automation, and Testing
Since migrating to Skio, Space Goods has notably benefited from three of our platform features: robust analytics, custom automated workflows, and effortless testing.
Matt breaks each of these down below.
1. Gauge Analytics on a Centralized Dashboard
Space Goods launched about a year ago, meaning they only recently collected enough data to enable meaningful, big-picture analytics.
Now, Matt logs onto his Skio dashboard (powered by Source Medium’s Embedded Analytics software) daily to check headline figures such as:
- New net subscribers over the past 24 hours and past month
- Churn (whether it’s trending up or down)
- The AOV of subscriptions
In all, he calls our analytics features robust yet still easy to comprehend and take action on.
2. Design Automated Flows to Reduce Churn
Skio users can construct and automate custom workflows within our platform.
For instance, if a Space Goods subscriber indicates they’d like to cancel their plan, the site will encourage them to stay by automatically offering a bigger discount. According to Matt, this automated sequence has already driven down subscription churn.
3. Skio Makes It Insanely Easy to Test Offers
Space Goods can easily build, test, and enable various deals for subscribers (i.e., pre-pay for three months for major savings).
Matt highlights that this is a game-changer since testing pricing models and offers can supercharge conversions. In one case, they tested subscription-only PDPs with a cheaper-priced first month. As a result, within the last month, their subscription rate has doubled.
With easter holidays approaching, Matt anticipates ramping up testing to maximize both subscription and one-time sales for the holidays.
“It’s super easy to build deals with Skio. After testing subscription-only product pages that offer a cheaper first month, our subscription percentage doubled.”
How Space Goods is Ramping Up Subscription Growth
Since launching less than six months ago, the Space Goods subscriber base has grown from zero to 4,000. More specifically:
- Subscriptions have brought in roughly $130,000 in MRR
- They’ve accounted for 25% of new customer acquisitions
- They’ve accounted for 52% of recurring revenue in the last 30 days
“It’s way higher than anything I’ve seen in the past,” Matt tells us, mainly because Space Goods is his first subscription model.
He attributes this massive subscription growth to three levers:
- Doubling down on paid social — They spend about $5,000 daily on Instagram ads.
- Word of mouth — Users will naturally refer Space Goods to their friends, which often leads to excellent, authentic product reviews.
- Building a “cult following” on social media — By staying active on socials, the brand encourages customers to post product love and UGC, drumming up attention.
To Maintain Long-Term Growth, Invest in the Right Tools
As a startup in its first year, Space Goods can't handle the loss of users churning en masse because their subscription portal is glitchy or the backend platform code keeps breaking.
Fortunately, Skio has proven itself as a piece of stable, smooth, and scalable subscription software. On the rare occasions that something goes wrong with the system, or when someone just needs extra guidance on the admin end, the team at Skio is skilled and responsive.
Whatever the vertical, Matt advises finding the right vendor for you and sticking by them to build consistency. Hopping from platform to platform just doesn’t work out well. For Space Goods’ subscription engine, that ideal partner is – and will continue to be – Skio.
“When you’re working with an agency, a SaaS tool, or anything that’s fundamental to your brand, it’s important to find a solid provider like Skio and stick with them.”
Why Space Goods is Partnering with Skio for the Long Haul
Looking forward, Matt anticipates keeping Space Goods’ product offerings neat and simple, especially as the brand still runs on limited resources.
In January, they rolled out Dream Dust — a nighttime companion product to their hero SKU, Rainbow Dust, a mushroom blend and coffee alternative. Both SKUs will thrive as a day-and-night subscription bundle, which could double AOV for their existing subscriber base.
Ultimately, Matt aims to build Space Goods into a cult brand specifically built for subscribers.
Imagine companies like Huel and Athletic Greens, which charge in the ballpark of $40 per user per month. If you've attracted millions of users, your business is thriving. Matt himself uses their products daily and likely spends thousands on them each year.
That cult status and degree of scale are more than possible for Space Goods — especially by powering their vital subscription engine with Skio.
“A large chunk of our revenue is in subscriptions, and it’s compounding fast. That’s where the long-term value is. With Skio, we can keep scaling smoothly.”