8. Subscription vs. On-Demand: Cracking the Code with Kevin Sakamoto of Dollar Shave Club

The Estee Show - Product Management & Business Insights

There are two ways to purchase: buy when needed ‘on-demand’ or purchase via subscription, i.e. buy once and get the product delivered regularly on an automated cadence. The subscription model became popular in the last decade both with customers, businesses and investors. However, subscriptions have been under a lot of scrutiny lately by FTC due to numerous customer lawsuits and complaints, which result from businesses focusing on keeping subscriptions active at the expense of the customers best interest, either by making it extremely difficult to cancel, or by playing with renewal reminders hoping that customers ‘forget’ they are paying for service and don’t cancel..

In this episode, Kevin Sakamoto joins us. Kevin is a Product Leader at Dollar Shave Club, a seasoned expert in both on-demand and subscription businesses. The Dollar Shave Club is known for its subscription model, delivering razors to customers regularly. Kevin discusses the challenges of the subscription business model, including customer churn and ethical considerations. Kevin talks about the need for ethical practices and compliance with the Federal Trade Commission guidelines. He also mentions the importance of considering macroeconomic factors and customer-specific data to reduce churn.

Kevin discusses various aspects related to his experiences working at companies like Zappos, Target, and Lululemon. He shares insights about the culture, values, and practices within these organizations. Kevin discusses his ongoing doctoral research that focuses on Employee Resource Groups (ERGs) and their role in driving social change within companies, particularly in the context of diversity and inclusion.

Kevin emphasizes the importance of embracing change, learning, and staying close to the legal aspects of business, especially in the context of subscription-based companies. He also highlights the significance of creating a culture that reflects and internalizes company values, and how providing space and support for teams within a large company can lead to successful initiatives.

Kevin shares his experiences with the values and culture at the companies he's worked for, for example, employees at Lululemon were encouraged to participate in yoga sessions during work.

In addition to his professional insights, Kevin shares his passion for his Doctor of Business Administration research, which explores the dynamics of Employee Resource Groups in the corporate world and their potential to bring about social change. This research is informed by his personal experiences and a commitment to making a positive impact in the field of diversity and inclusion.

Explore the dynamics of subscription models, ethical practices, and corporate culture with Kevin Sakamoto!

Highlights:

• How subscriptions work

• How companies can retain their customers

• Importance of accurate data on customers and inventory management

• How to minimize churn

• Role of Product managers in winning back churned customers

• Kevin's experiences at companies like Zappos, Target, and Lululemon, and what makes their cultures unique.

• Why it's important to be open to new ideas and learn

• The need to understand legal ramifications of product launches in subscription businesses

• Creating a work culture that follows the company

• Kevin's research on making workplaces more diverse and inclusive

About the Guest

A former Product Management leader at Zappos, Target, and lululemon, Kevin has extensive experience in A/B testing, digital product development, e-commerce strategy, Product Management team development, site analytics, and social commerce. He is currently serving as Dollar Shave Club’s Senior Director of Digital Product Management, where he is responsible for site strategy, design, and functionality of their US and International websites in addition to leading site analytics and UX research efforts.

Kevin is currently pursuing a Doctorate in Business Administration from Pepperdine University. An advocate for diversity in the workplace, Kevin is researching the motivation and barriers employees of color face when joining Employee Resource Groups.

Connect with our Guest

• LinkedIn | Kevin Sakamoto

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About Estee Estee Goldschmidt is a customer-obsessed, delivery-oriented, and data-driven product leader. With extensive experience in strategy, product, marketing in the healthcare and CPG industries, startups and corporate, she joins teams to solve complex revenue problems related to client conversion and retention.

Her motto for proof of concept is: test, reiterate, scale. Estee’s background is in a diverse set of fields ranging from founding startups to leading teams in multinational corporations.

• Website | www.esteegoldschmidt.com

• LinkedIn | www.linkedin.com/in/esteegoldschmidt/