Paw-sitively Awesome Conversation on Cat Videos And The Subscription Business Model

A Conversation with Deena Bronz, co-founder of
This week we talk to Deena Bronz about the Subscription model in eCommerce. We talk about everything from her teams’ fondness for puns on social media to Why you need a Subscription Model to De-Claw your Competition! She shares some amazing insights into this industry and provides us with advice and tips that every eCommerce entrepreneur could benefit from hearing.

Would you be willing to walk away from recurring revenues?


A Conversation with Deena Bronz Show Notes:

“Cat videos are a part of my job, so that’s pretty lucky”

“It’s important to want to come to work each day”

“One of my favorite things about the subscription model is the recurring revenue aspect of it, you don’t have to keep acquiring your customer each month.”

“You have to provide a great product that keeps them happy and keeps them subscribed.”

“One of the keys here is that your user acquisition cost is low enough that it pays back quickly and certainly within the average period that the customers stay subscribed.”

“Know your CPA’s, payback periods, the CHURN and the average duration of the subscription.”

“I think subscription models are a growing trend, they are on the rise, it’s a growing industry”

“A lot of traditional eCommerce players are finding ways to introduce subscriptions into their businesses.”

“Consumables are a great way to go for any curated box where it’s feasible.”

“Promise, more than what they pay for.”

“Encouraging recycling and donations… makes them closer to a consumable product.”

“If it’s not consumable it’s really critical to include something that is so enticing and exciting and valuable every month that customers want to continue getting it.”

“Delight your customers and leave them better than you found them.”

“If you provide an amazing experience that makes people happy and brings positivity into their life then they will be loyal customers to you forever.”

Subscription Metrics to track: I(In order to keep the model healthy and profitable.)

  • CPA – (Cost per Aquisition): Can be defined as the total cost to acquire a customer, or how much do I have to spend in marketing dollars to get a paying customer? Jason Spooner of the SME goes as far to say “It Is the Only Metric That Really Matters
  • Payback Periods: The payback period as referenced in this podcast and in the case of subscription models can be defined as is the time required for the amount invested (CPA) in an asset to be repaid by the net cash flow generated by the asset. In layman’s terms, if it costs you $10 to acquire a customer, how long is it until you start generating profits off of that given customer.
  • Churn: The percentage rate at which customers cancel their subscriptions.
  • Average Duration of Subscription: Often used interchangeably with churn, it is however not the rate of cancellations but the average duration for example 6 months. Whereas Churn would be 95% cancel within 6 mo’s.

Links from the Cast: A monthly box of cat goodies
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About Branden Moskwa

He is the co-founder of calls him remarkably innovative. IBM says he is one of the industry's brightest minds, and SAP refers to him as one of the industry's top players. Branden has been quoted by and CDW and his company was recognized for being one of the top 5 most innovative companies by SBBC.