Episode 142: Crafting a Blooming Business with John Tabis of The Bouqs Company

In the world of subscription services, flexibility and customer focus are keys to success, a notion thoroughly explored in the latest episode of the "Subscriptions: Scaled," podcast. Host Nick Fredrick delves into the inspiring story of John Tabis, Founder of The Bouqs Company, a subscription-based flower delivery service. John shares the evolution of Bouqs, highlighting the critical role of a customer-centric approach and the unique challenges of establishing a direct-from-farm supply chain. 

Understanding Customer Needs for Subscription Growth

The Bouqs Company began with a traditional subscription model, offering regular deliveries of fresh flowers. However, John noticed early on that a one-size-fits-all approach was not resonating with their customers. “We had low numbers. So we spent some time with our customers. We dug into sort of the use cases, how people use it, how they didn't use it,” John explains. This led to a critical pivot in their business strategy.

In 2019, The Bouqs Company reimagined its subscription model to prioritize customer flexibility. This change allowed subscribers to modify delivery dates and recipients and even pause their subscriptions. The result? A sixfold growth in their subscriber base within six months. “No one else can do the price value that we can do because we ship it directly from the farm. And so once we get people on, we have them,” says John.

Understanding and Leveraging Customer Behavior

Despite experimenting with a mobile app, The Bouqs Company found its primary customer engagement through its website. Understanding that each platform has its unique challenges and benefits is crucial for any Tech CEO. This experience underscores the importance of choosing the right channels for customer interaction and service delivery.

John observes that while some customers might exploit the flexible system, most do not. He argues for focusing on the majority who appreciate and respect the service, rather than the few who might take advantage of it. “It doesn’t mean that everyone is going to take advantage of that or work the system,” he explains. This philosophy has helped The Bouqs Company build trust and foster long-term customer relationships.

Diversifying Channels for Customer Acquisition

The Bouqs Company’s journey, from organic growth through SEO and Shark Tank appearances to diversifying acquisition channels, highlights the evolving nature of customer outreach. John’s experience underscores the importance of multi-channel marketing strategies in today's digital landscape. This includes exploring physical retail to complement online efforts, thereby opening new segments like weddings and corporate events.

Implementing these flexible subscription options wasn't without its challenges, especially on the technological front. John shares the decision to build a custom subscription platform from scratch after finding existing solutions inadequate. This bold move, though costly and time-consuming, provided The Bouqs Company with a unique advantage in managing complex customer requests efficiently. “We built our entire supply chain optimization engine ourselves,” John states, emphasizing the significance of tailored technology solutions in managing intricate subscription models.

Customer-Centric Approach to Subscription Flexibility

John highlighted the importance of customer feedback in shaping The Bouqs Company's subscription model. By focusing on customer dissatisfaction and their reasons for canceling subscriptions, John and his team identified the need for a more flexible model. This approach was not just driven by data but also intuition about what customers truly desired. "We believe that ultimately the customers are right and that what they're telling us is going to be the right product," John explains. This customer-centric approach was instrumental in the success of their flexible subscription model.

Investing in Technology for Scalability and Precision

The Bouqs Company made a significant decision to invest in building their technology platforms from scratch, particularly to manage their complex supply chain and subscription services. This investment was a strategic move to ensure scalability and precision in flower delivery, crucial for their product's success. John underlines the investment's importance, saying, "It was tens of millions of dollars of investment... we took a long-term view of saying we raised 24 million with our series C back in the day."

Looking ahead, The Bouqs Company is focusing on retail expansion. This move is aimed at enhancing customer acquisition and offering a broader range of products, including non-floral items. John notes the potential of retail stores in expanding the company's reach and providing customers with faster delivery options. He also discusses the importance of adapting to changing customer needs and market dynamics.

Leadership and Self-Reflection

One of the most profound aspects of John's journey was his decision to step down as CEO and focus on what he loves — building things. This self-reflection and understanding of personal strengths and preferences plays a significant role in The Bouqs Company's continued success. "I fired myself in 2020 as CEO and made myself Executive Chairman... I realized over time that my sweet spot is building things," John shares, emphasizing the importance of role adaptation in leadership.

John Tabis’s experience with The Bouqs Company offers valuable insights into the importance of customer-centric approaches, strategic technology investments, exploring new retail avenues, and the significance of leadership flexibility. His journey illustrates that understanding and adapting to customer needs, coupled with self-awareness in leadership, can lead to sustainable success in the tech-driven business world.

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