25iQuiz: What are the likely unit economics for Nike?
Adventure Club is a sneaker subscription for kids ages two through 10: four pairs of sneakers a year for $20 a month, six pairs for $30 a month or 12 pairs for $50 a month from a selection of ~100 sneakers.
CAC? Churn? GM?
There are terms Nike can adopt to cut customer acquisition cost. For example, this means a customer gives up less optionality: "parents to can upgrade or downgrade their subscription at any time, or even put it on pause." Shoes are shipped directly to the customer (no retailer).
The best way to sort out unit economics is: "Nike has been testing the program since 2017, when it was known as Easy Kicks. The test reached 10,000 members." Others are in the market with subscription offers so looking at comps is helpful in planning: https://www.google.com/amp/s/techcrunch.com/2019/08/12/nike-launches-a-subscription-service-for-kids-shoes-nike-adventure-club/amp/ …
Why look at this Nike example if you don't sell shoes? The more examples you see the more you improve pattern recognition. Every set of facts is unique, but there are patterns. My friend who is a surgeon says he never takes vacations for > three weeks because he "needs the reps."
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