WisePass grew its subscriber base by over 200% within 12 months
In the past few years, WisePass has operated with a simple subscription service. People would download an app, sign up, and choose a plan to subscribe to. Simple.
With that plan, users could access and redeem offers from various businesses, including F&B outlets, movie theaters, coffee shops like Starbucks, and even gyms.
However, the monthly fee of $300 USD presented a significant obstacle, particularly in the Vietnamese market.
While the plan offered valuable perks, such as complimentary wine or spirits bottles in some bars (retail value of $100 USD), its high cost limited its accessibility to a small segment of the population.
Following a principle from Eric Schmidt, we dedicated our efforts to making the plan more affordable or even free to attract a larger user base and enhance its value for the businesses we partnered with.
Free Tier
Last year, we began implementing this strategy in Thailand. WisePass already had a presence in Hanoi and Ho Chi Minh City, where we conducted several events. However, user acquisition and retention remained challenges.
In other words, the subscription process generated friction, and initiatives like a joint event with Lune and Taylor Swift fans, while attracting initial subscribers, did not lead to long-term engagement.
To address this, we introduced a free tier plan in July 2024 to gauge user reaction.
This initiative proved successful. Users downloaded the app and could scan and redeem offers, while we maintained control over the redeemable items.
Community
Acquiring users is relatively straightforward. However, executing an organic user acquisition at scale with minimal cost presents a distinct challenge.
To overcome this, we began collaborating with various communities, offering exclusive deals negotiated with our merchant partners.
Communities typically exhibit high engagement and consistent activity. We successfully implemented this strategy with the Overseas Vietnamese community and garnered interest from other communities seeking to leverage our platform to facilitate member participation in events.
While initial growth may be gradual, it accumulates over time. Moreover, community engagement often requires less sustained effort as members become accustomed to the platform. This approach also fosters more positive and receptive relationships with our merchant partners.
Monetization
As our user base expands and demonstrates consistent engagement, an increasing number of merchants express interest in being listed on WisePass.
Furthermore, merchants are willing to pay a fee for the business we generate for them.
Concurrently, we observe more brands approaching us to explore sponsorship opportunities or participate in our events.
The primary challenge has been to develop a sustainable monetization strategy given the influx of merchants seeking to leverage WisePass.
Traditionally, our revenue stream relied primarily on user subscription fees.
However, by engaging with three key stakeholders – users, merchants, and brands – we have identified multiple avenues for monetization.
We anticipate that WisePass will soon establish a consistent and profitable revenue stream from the merchant base, characterized by reduced churn in the coming months.
Conclusion
The year 2024 has been a pivotal year for WisePass, marked by significant growth in revenue, profit, and user base (over 200% within the past 12 months).
A key takeaway is the substantial potential for user growth in the coming months, driven by strategic community engagement and refined monetization strategies for 2025.
