Day 197

17:27 PM

1 week ish away from finishing helpdesk just tidying stuff up + going through some 'to dos'

Then got some features to do after I get 'app review' but

I'll probably only go through app review after I've done self-service

Then after/before app review I'll make everything 'teams' based so big brands can use it at scale

BUT

More importantly

SMS marketing benchmarks are:

- 10% to 20% acquisition rate

• $0.10 to $0.20 revenue per message
• 3-5 messages per month per subscriber
• $0.50 to $1 revenue per customer per month
• $6 to $12 revenue per customer per year

So

Messages cost $0.0075 to send

I believe Maybe some surcharges

That means SMS has 10-20X ROI

Volume discounts (per month) (first 5 million, $0.0075, then next 20 million, $0.05, next 75 million, $0.03)

75 million messages = 20 mill customers per month

700,000 orders per day

If I have 10,000 merchants and each gets 70 orders per day on average, I should get the 75 million discount

Anyway

Let's assume I've got the worlds best user experience, everything automated

How do I make this front-end profitable - as a business model

Change the pricing frame?

See, my competitor charges $500/mo

But for smaller customers they charge a surcharge of $0.0075

$0.0075 * 3-5 messages per month * 12 = $0.45 per customer per year

Compared to $6 to $12 per year, the $0.45 per customer per year is pretty solid

If a store gets e.g. 100 orders per day, you get $112 per month

Wait what

0.00755100*30

$0.45 per year is $0.0375 per month

0.037550030

Even a big store (500 orders per day) is only $562 per month

But... if you get the entire customer list (e.g. 100,000 people)

100,0000.00755 messages per month = $3750 per month

But an average SMS list is more like 10,000 = $375 per month

So wait a second.

With SMS. A list of 10,000.

The merchant is making 10,0000.155*12 = 90,000 per year average $7500 per month revenue Approx $3000 with standard 40% e-com margins

So my costs are 0.0075 I charge them 0.015

10,000*(0.015-0.0075)*5 = $375 per month

For the same thing, klaviyo charges $450 per month

Mmmm I'll see

Improvement is needed to this model.

Then I'll have my customer support app there too + self-service

+ after SMS I'll make a subscriptions app

maybe after a split payments app

Anyway all good, back to work