Foundr Magazine publishes in-depth interviews with the world’s greatest entrepreneurs. Our articles highlight key takeaways from each month’s issue. We talked with Jessica Rolph, founder of Lovevery and Happy Family, about building a subscription business from scratch. To read more, subscribe to the magazine.
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Walk into any store that sells baby food and you’ll see a plethora of organic options and dozens of different types of squeeze pouches.
That wasn’t the case nearly 15 years ago when Jessica Rolph and her partner, Shazi Visram, put the very first pouches on store shelves. Their Happy Family baby food company was just three years old and had been struggling to attain that perfect market fit in the parenting space.
Happy Family was founded in 2006 as a purpose-driven company. Their goal was to provide fresh, organic baby food in a market with few choices.
“At the time, only 3 percent of all baby food consumed was organic,” Rolph says. “We had a dream to change the way that babies are fed in this country. We really wanted to bring that best nutrition to early life.”
They tried fresh food, which wasn’t scalable, and frozen food, which wasn’t a fit for the market. But when they launched their organic cereal puffs and then their pouches, parents responded, and the company took off.
Today, Happy Family is the leading organic baby food company in the U.S. They invented the now-ubiquitous squeezable pouches that practically every baby and toddler brand emulates.
“I remember going to bed every night dreaming about building this company that was purposeful, that was successful, that was changing the way that babies were fed,” she says.
“I remember going to bed every night dreaming about building this company that was purposeful, that was successful, that was changing the way that babies were fed.”
In 2015, Rolph and Visram sold the company to Danone, reportedly for more than $250 million, which allowed Rolph to focus on a new purpose-driven business: a subscription-based toy company with a focus on early childhood development. Now in its eighth year, Lovevery has more than 300,000 active subscribers and is one of Fast Company’s Most Innovative Companies.
Once again, Rolph was hyperfocused on her audience: parents who care deeply for their child’s development and children who want fun toys to play with.
“Parents are willing to hand over their trust readily to someone who is solving this core need for them of ‘help me feel better about this really chaotic, hard parenting experience. I want to feel more optimistic. I want to feel more confident.’ We bring that confidence to parents in their homes,” Rolph says.
Lovevery: Research and Testing
With one successful business under her belt, Rolph was ready to move on to the next.
“I felt like I wasn’t done with the experience of creating a company,” she says.
She started speaking to her current partner, Rod Morris, who had experience growing mission-driven companies. They started talking about a subscription-based toy company focused on early learning and development.
“My partner Rod and I have a fifty-fifty partnership,” she says. “We’ve really built this business together, and that process has been one of the most satisfying things. It’s really about trying to get out this vision that you can’t help but share.”
Rolph and Morris spent a significant amount of time fostering relationships with potential customers and testing products with families all over the country, iterating as they went.
“It felt like we were never going to launch this first product for Lovevery,” Rolph says. “We had done so much testing to make sure that we had our best shot at product-market fit at the moment that we launched.”
“It felt like we were never going to launch this first product for Lovevery.”
For Happy Family, she says, much of their product development was based on instinct, which they then tested in the market.
Rolph and Morris launched their first product, the Play Gym, in 2017 on Amazon. Using Amazon allowed them to encourage people to follow them on Instagram and collect a customer list for their weekly email series on child development and upcoming products. From that list, they built out their direct-to-consumer (DTC) subscription model.
“We launched with Amazon because that’s the place where search originates,” Rolph says. “It’s the place where a lot of registries happen, and our dream was to be the number one in revenue in the category on Amazon within a year of launch. And I remember literally going to sleep at night and visualizing number one in revenue in the category on Amazon.”
Within a year, they were there. The response to the Play Gym was immediate—a real indicator that they had hit product-market fit from the beginning. They had strong sales within weeks of launch, and parent influencers picked up their product.
That testing and constant iteration have meant market fit on nearly all the products the company has launched since. Her advice to other founders who want to hit the ground running with their product is to do the same.
“Obsess over your product and really do a ton of testing and research before you launch,” she says. “And then after you launch, remember that your product is not done; that actually launching the product is a continuation of the product development process. That’s where you start getting feedback at scale and continue to obsess over that feedback and iterate your product. Never be satisfied with what you have. Always be looking to make it better.”
“Never be satisfied with what you have. Always be looking to make it better.”
“We have really built an engine of recurring revenue growth through our business by bringing purpose and confidence to parents in early childhood,” Rolph says. ”We have 320,000 subscribers, $200 million in run-rate revenue, and $150 million in subscription ARRs (annual recurring revenue). We’ve got world-class retention in our subscription program. So all the business metrics are there.”
Rolph and Lovevery co-founder Rod Morris
Two Companies With One Purpose
Happy Family and Lovevery are very different companies within the parenting space, but Rolph attributes their success, at least in part, to her and her partners’ focus on their customers—both parents and children.
Rolph understands that her customers are constantly changing; children are growing and hitting different milestones, and parents are pivoting to meet the needs of their children. Happy Family provides nutritious foods for children at different growth stages, and Lovevery provides toys for children and content for parents as they grow.
That purpose, to support parents and their children, is what drives the success of her companies.
“For us, the purpose is to improve outcomes for children and really advocate for what that child needs at each stage and then help the parents feel really confident and good and optimistic about their parenting,” Rolph says.
It’s the heartbeat of Rolph’s work, something she believes every company should have. “I think that a lot of companies do have a heartbeat,” she says. “It’s about making sure that you amplify that as a founder.”
The post Jessica Rolph Says Your Subscription Product Needs Purpose appeared first on Foundr.
