The Top Voices Media organized The Top Startup PM Awards 2024 to recognize outstanding Product Managers in startups. In the Feature of the Year category, the winner was Akshat Agarwal, whose work at abCoffee stood out for launching India’s first on-the-go coffee app and pioneering a subscription-based model. We had the opportunity to speak with Akshat about his journey into product management, the challenges he faced while building the app, and the strategies he used to enhance customer experience and retention.
I am Akshat Agarwal, the Product Manager at abCoffee. In 2024, I graduated from IIT Dhanbad with a Bachelor of Technology in Environmental Engineering and joined the abCoffee product team as a lead. I have over 1.5 years of experience in the product field, having completed internships at B2C and B2B startups, worked in the oil and gas industry, and collaborated with several founders in stealth mode. My hobbies include filmmaking and cinematography; I also served as the coordinator of the filmmaking club in college and led the Media and Branding Cell at my college.
During the past eight months at abCoffee, I have gained significant insights by developing India’s first on-the-go coffee app from scratch, creating new features, and enhancing them by collaborating with all the stakeholders in the company. This app is designed for convenience, quick service, and a hassle-free ordering and takeaway experience. We launched the app in the last week of August, and within a week, we achieved 25,000 downloads.
What initially drew you to the product management role at abCoffee, and how did you identify the opportunity for improvement in the app's user experience?
My passion for building impactful products and enhancing customer experiences led me to product management at abCoffee. I was particularly excited about abCoffee’s vision of making premium coffee more accessible and convenient for customers.
Upon joining, I deeply studied user data, customer feedback, and user behaviors. I noticed that while we had a strong base of daily coffee drinkers, their journey through the app was repetitive and lacked additional value. Many users expressed frustration over having to go through the payment process daily without any tangible benefits. This insight led me to explore subscription-based models as a solution to enhance convenience, boost retention, and improve the overall user experience.
How did you identify and validate customer pain points through research?
I used a combination of qualitative and quantitative research methods to deeply understand customer pain points:
- User Interviews & Surveys: I conducted interviews with loyal customers, frequent buyers, and corporate clients to understand their coffee habits, frustrations, and expectations. Many expressed the need for a more seamless payment process and additional perks.
- User Behavior Analysis: I analyzed app and Takeaway usage data to track daily purchase behaviors, cart drop-offs, and payment friction points. The data revealed a strong trend—users who ordered coffee frequently found the purchase flow repetitive and time-consuming.
- Competitor Benchmarking: I studied subscription models in global coffee chains and other industries to assess the potential impact. This helped in designing a model that fit Indian consumer preferences.
- Pilot Launch & Iteration: To validate our assumptions, we ran a pilot version of the subscription model, gathering early feedback and making refinements to improve adoption and user experience.
These steps confirmed the demand for a subscription-based model that prioritized convenience, rewards, and personalization.
Can you outline the key steps you took in developing the Subscription Card Model from ideation to execution?
I followed a structured approach to bring the Subscription Card Model to life:
1. Problem Identification & Research
- Conducted user interviews, surveys, and data analysis to validate the need for a subscription model.
- Benchmarked against international coffee brands and Indian consumer subscription trends.
2. Ideation & Solution Design
- Brainstormed multiple subscription models, including pay-per-use, unlimited plans, and tiered offerings.
- Worked with design and tech teams to create a seamless in-app experience with minimal friction.
- Ensured personalization by introducing different subscription tiers.
3. Execution & Development
- Collaborated with engineering teams to develop the backend infrastructure for subscriptions, payment integration, and auto-renewals.
- Partnered with marketing teams to create compelling messaging around the benefits of the subscription card.
4. Pilot Launch & Feedback Collection
- Launched the subscription card with a select group of customers and internal employees.
- Collected feedback to refine pricing, usability, and promotional offers.
5. Full-Scale Rollout & Optimization
- Monitored key metrics such as adoption rates, retention, and cross-selling impact.
- Optimized store operations to prioritize subscription users for faster service.
- Introduced additional perks like size upgrades and bakery discounts to enhance value.
This structured approach ensured a successful launch and rapid adoption of the subscription model.
What were the main challenges when launching the Subscription Card system in the Indian market, and how did you overcome resistance to subscriptions?
Challenges:
- Consumer Skepticism: Indian customers are often hesitant about prepaying for services without immediate benefits.
- Price Sensitivity: Many users preferred a pay-as-you-go model rather than committing upfront.
- Operational Challenges: Ensuring quick redemption, minimizing confusion at outlets, and training baristas to handle subscriptions smoothly.
Solutions:
- Value-Driven Pricing: Instead of positioning it as a discount plan, we marketed the subscription as an exclusive club with added perks like free-size upgrades and special food deals.
- Easy and efficient Bulk ordering: Subscription cards are much more easy, convenient, and cost-effective for bulk ordering. Users can easily buy 10/30 beverage cards and can redeem multiple beverages at a time.
- Tiered Offerings: We introduced multiple subscription levels (Classic, Signature, and Infinity) to cater to different customer preferences, making it easier for users to find a suitable plan.
- Barista & Store Training: We streamlined operations and trained baristas to handle subscriptions efficiently, ensuring a smooth customer experience.
By positioning the subscription as a premium, value-driven offering rather than a discount-based model, we successfully overcame resistance and saw rapid adoption.
Why did you introduce different tiers for coffee drinkers in the Subscription Card Model, and how did this impact adoption?
Why Different Tiers?
We identified three distinct customer personas through research:
- Daily Coffee Drinkers – Needed an all-inclusive plan with maximum benefits.
- Casual Buyers – Preferred flexibility and affordability.
- Corporate/Student Users – Wanted specific perks like bulk purchases or travel-friendly options.
Impact on Adoption:
- Personalization: Customers could choose a subscription that aligned with their needs, reducing friction in the decision-making process.
- Higher Retention: Users were more likely to renew since they felt they were getting value tailored to their consumption habits.
- Increased Upselling: Users who initially opted for lower-tier plans later upgraded to premium tiers after experiencing the benefits.
This tiered strategy maximized adoption and satisfaction while accommodating diverse consumer preferences.
How did you optimize store operations to ensure quick and personalized service for subscription cardholders?
To make the subscription experience seamless and premium, I led the following optimizations:
- Priority Ordering: Subscription card orders were given priority over normal orders to reduce wait times and give a hassle-free experience.
- Barista Training Programs: Ensured that staff was well-trained to recognize and process subscription orders quickly to give a more personalized experience to subscription card holders.
- Personalized merch: Subscription card holders and buyers get a personalized on-the-go tumbler at our outlets, which gives them instant gratification and improves brand recall for long-term commitment and loyalty.
These enhancements boosted customer satisfaction and positioned the subscription as a premium experience.
What metrics did you use to track the success of the Subscription Card Model?
I tracked KPIs across user engagement, sales, and retention:
- Adoption & Growth:
- Subscription card purchases (grew 650% in four months).
- Conversion rate from free users to subscribers.
- Customer Engagement & Retention:
- Repeat user ratio (jumped from 13% to 68%).
- Subscription renewal rate (indicating customer satisfaction).
- Revenue & Cross-Selling Impact:
- Revenue from subscription cards (grew 430%).
- Increase in food sales (2.5x growth due to bundled offers).
These metrics helped refine the offering and sustain long-term growth.
What key lessons did you learn from implementing the Subscription Card Model, and what advice would you give to other product managers in subscription-based models?
Key Lessons:
- Consumer Trust is Crucial: In markets resistant to subscriptions, focusing on value and flexibility is key to adoption.
- Frictionless Experience Drives Success: The easier it is for users to redeem subscriptions, the higher the engagement and renewal rates.
- Personalization Matters: Offering tiered plans and exclusive perks ensures the model appeals to a broader audience.
Advice for Other Product Managers:
- Validate Your Model Before Scaling – Run a pilot program to test pricing, usability, and retention before full rollout.
- Prioritize User Education – Communicate the value proposition to reduce skepticism.
- Optimize for Renewals – Use push notifications, exclusive perks, and personalized offers to encourage renewals.
- Talk to users: Do talk to daily users and your product customers as they give you the best feedback and improvements that help in improving customer satisfaction, engagement, and long-term commitment from the users. Your customers are the best product managers as they are the ones for which you make your product and get the best judgment.
By focusing on seamless experiences, strong value propositions, and personalization, PMs can build high-retention subscription models that drive long-term business growth.