Pura created the world's first smart fragrance diffuser, a device that plugs into any outlet and can be fully controlled by an app. Pura has been described as “the biggest technology company in the history of fragrance” with a fragrance sold every 3.7 seconds in the US. Currently, their fragrances can be purchased either standalone or via a subscription.
“Fragrances are the center of our business so we really want to shift more people to the subscriber pool,” says Bryson Ross, Pura’s Director of Strategy.
“That means doing a lot of work figuring out what our customers value. Unlike software companies, we can’t just build out a new feature or roll out a new update to get customers to use our products, we have to ship the physical goods. We’ll sell significantly more product this year alone, so we need to be confident that any changes we make will be worthwhile.”
While there had been pricing and monetization models set before Bryson arrived, there was a need for data and research on what price points and subscription incentives Pura should offer. Bryson says he and the team realized there was a big opportunity as the company moved into fast growth mode.
“Our pricing model wasn’t based on any data, it was a result of conversations when the company had just started. How we priced products was based on what felt right.”
Bryson realized there was an opportunity to do better.
“The business was growing very quickly at this point so we wanted to capture those opportunities quite fast. We began looking at how we could tweak our business model.
Our CEO had the idea of giving away a device combined with a subscription commitment, which would be a pretty big change for us. But we needed to figure out how to make this profitable too.”
Bryson wanted to explore how – through the incentive of a free device – Pura might be able to maximize customers’ lifetime value with a different pricing model.