Taxumo
Taxumo
https://www.taxumo.com
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A subscription business for an online tax solution startup.
A subscription business for an online tax solution startup.
Background and Role
Background and Role
The startup started as an on-demand tax solution for freelancers and SMEs. Though they are able to generate revenue, they wanted to try a subscription model to generate recurring revenue.
As the Product Management Lead, I worked directly with the CEO to understand business needs and experiment with new features. I lead a team of two (2) product managers, four (4) developers, and a marketing manager. Since it was a startup, I wore multiple hats like user-researcher and even sales manager.
The startup started as an on-demand tax solution for freelancers and SMEs. Though they are able to generate revenue, they wanted to try a subscription model to generate recurring revenue.
As the Product Management Lead, I worked directly with the CEO to understand business needs and experiment with new features. I lead a team of two (2) product managers, four (4) developers, and a marketing manager. Since it was a startup, I wore multiple hats like user-researcher and even sales manager.
Early Results
Early Results
The initial business requirement was to create a Pro package that has some additional services. Aside from tax filing, it offers business renewal and annual income tax filing.
We were able to get additional revenue from that package but it wasn't generating as much revenue as we initially projected.
The initial business requirement was to create a Pro package that has some additional services. Aside from tax filing, it offers business renewal and annual income tax filing.
We were able to get additional revenue from that package but it wasn't generating as much revenue as we initially projected.
Iterations, Metrics, and Strategy
Iterations, Metrics, and Strategy
In order to find a product-market fit, here are the different iterations and key actions that we did:
1. Gather more data from the users: I initiated user interviews with the goal of understanding the different problems and needs of our customers.
2. Analyze the insights: the insight that we got was that aside from tax filing, they needed something to cover the other administrative requirements of owning a business.
3. Build/repackage the features: we've found out that with only minor changes to our website, we can create a Premium package that our customers might avail of - and that's what we did.
After experimenting with pricing for two months, the strategy worked and we were able to achieve these metrics:
- Extended the average customer lifetime value by 3 months
- Increased the annual recurring revenue of the startup by 500%
In order to find a product-market fit, here are the different iterations and key actions that we did:
1. Gather more data from the users: I initiated user interviews with the goal of understanding the different problems and needs of our customers.
2. Analyze the insights: the insight that we got was that aside from tax filing, they needed something to cover the other administrative requirements of owning a business.
3. Build/repackage the features: we've found out that with only minor changes to our website, we can create a Premium package that our customers might avail of - and that's what we did.
After experimenting with pricing for two months, the strategy worked and we were able to achieve these metrics:
- Extended the average customer lifetime value by 3 months
- Increased the annual recurring revenue of the startup by 500%
Most Importantly
Most Importantly
We were able to reach profitability in the succeeding months after the launch of the new feature. Even if the team was just small, I consider this a major milestone since not all startups are able to cross this chasm.
We were able to reach profitability in the succeeding months after the launch of the new feature. Even if the team was just small, I consider this a major milestone since not all startups are able to cross this chasm.
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