5 lessons from 23andMe’s tragic arc: Morning Brief

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It is strange to say that growth is killed. But chasing technology giants off a cliff claimed more than a few victims.

The genetic test company (ME) provides the latest tragic example of the delay in profit. The revenues may be the desire to cast the most appropriate concept. The bankruptcy of the brand and the exit of the CEO this week shows that their birth was not just a sales problem – although this was definitely part of that led to insolvency procedures.

If some books should remain articles, which should have been left as tweets, 23ndme is a subscription company that should have never been announced and explored a different path. But there are some lessons from the company’s demise.

The user was not a one -time user, and for this reason technology companies use measures like daily or monthly active users instead of “this man gave us his DNA three years ago and has not registered us since he told us that his ancestors come from Italy.” It is clear that the genetic results received by more than 15 million customers received from 23andme in a final way that did not prepare repeated revenues. Sending salivary groups for most people was one relationship with the company. The cross -buyer problem has struck the direct brands of consumers, such as the one -stopped rank maker, which was extracted from public markets after less than a year of public subscription. People need to test their DNA even less times than they need to buy a new rank.

When you just need to buy a product once, or sometimes, subscriptions can maintain cash flow – if you can save value. Great if. Think about Apple services (broadcasting, music, fitness, or data storage) as a strong example, or Peloton (broadcast lessons) as more wonderful layers. But 23andme struggled to convert its customers in the test into subscribers to the excellent membership service, which provided dedicated health reports and deeper research tools. Not everything can be or must be a subscription work. When he does Costco, people create lifestyle cultures. But when the SNoo manufacturer, the internet -connected pasinite, tries to do this, there is a general cry on the taste and switch. As an independent product, 23andme was weak. But perhaps as part of a package with retailers, gyms, pharmacies, or doctors, it has made a more attractive proposal.