Saas-tainable
Can chocolate learn a trick from Silicon Valley
Like Christina Aguilera’s vocal chords in the 1993’s TV show Mickey Mouse club, the modern era of business also has a darling. And (yeah I know you’re not supposed to start a sentence with and, but I just did, and you’re gonna keep reading so get over it) just like the pop stars of the late 90’s it's been a revolving door. Sans the hair gel and somewhat disturbing school girl fantasy references, many blue eyed silicon valley startups have been courting the entrepreneurial equivalent of middle aged record label owners — who are in fact better looking and spend more time in the gym than Simon Cowell ever pretended to.
These young starlets have caught the attention of modern startup kingmakers aka VC’s (stands for venture capital and has nothing to do with the VOC — those guys were Dutch, and were like really into black pepper) with the promise of something new, something reliable, something that keeps the till register ringing again, and again and again (and oops I did it again).
Fueled by the recent supernova success of the Netflix model many new and mature software companies have diverted away from traditional product launches and redrawn their battle plans around the concept of SAAS or software as a service. Instead of users paying a large chunk of change for the same product with new bells and whistles every year (which inevitably make their way on the Pirate Bay to be downloaded by students who could never afford them anyway, and subsequently master them, in so doing becoming the next generation of users) the cost of products can be split into 12 easy payments per annum, offering a source of reliable and constant revenue month on month for businesses out there trying to do something meaningful.
“As above so below” — the Egyptian God Thoth is quoted to have said (don't ask me who wrote wrote it down though #chicken #egg).
So does what happens in tech apply to FMCG?
(fast moving consumer goods)
The honest answer is that just like tech companies, we all could do with consistent monthly revenue. It makes growth easier to track, expenses and expansion far far easier to manage and also makes it somewhat simpler to put out limited releases to an audience we know for a fact will be there. Also if subscriptions reduce over time we know we’re doing something wrong, and that feedback loop is vital for a brand that aims to be more than just a commodity out there pushing product (did I tell you our chocolate is just like you, amazing!).
CAAS — Chocolate as a service?
Putting out new product, fresh recipes and original ideas takes time, experimentation, wasted material and man hours all of which cost. Those costs are often divided by the expected quantity of units projected to be produced during lifetime of the product. But subscription economics gives brands the opportunity to keep innovating and experimenting constantly, month on month. Being somewhat insulated from the seasonality of sales cycles like gifting seasons, summer holiday etc, this new way of approaching product releases with a Netflix-esque membership means that brands can actually go above and beyond to develop their user experience and make fans of their products genuine participants in the brand’s mission.
Often times we at Naviluna struggle to really get across what we’re about. Yes! We’re into chocolate. Of course! We’re into gourmet foods. Definitely! We stand for an ethos of living better. But is all that adequately represented as the smoked salt garnish at the back of a chocolate bar? Lets face it, to use a cockney term — it fucking aint. No matter how many nostalgia-inducing pictures we post on Instagram there’s so much we have to say that just doesn't get across on a 16cm x 8cm mass of crystalised, hexagonally arranged fat crystals that are only going to melt the moment they touch your lips anyway. Sounds so futile I know…. bear with me. Let's all take a deep breath together…..
So…
to recap…..
If brands represent ideas (for some the idea is to make as much money with as little creativity as possible — GAP we salute you!), then brands are houses for concepts that reach out and touch people. Ideas that resonate with them. Their products are little envoys, handmade-paper-wrapped parcels of a belief that stuck, that tickled you, that made you smile, made remember and even, even made you forgive & forget. I think the true power of the subscription model lies in its ability to convert mere “users” (I know you didnt mean for it to feel that way, but sometimes it just feels like you go on shopify, get an order confirmation and then its over) into members. The one-time semi-casual munch-buddy becomes something a bit more committed, a relationship that develops with time, becomes more layered and nuanced as we listen and learn to what the other needs. Yes we’re getting deeper, and maybe it's a bit scary at first but don’t w…… it’s ok, you can cancel anytime (and remember there’s that 15% discount)
