Sweatcoin is a unique step counter and activity tracker that rewards your steps with a digital currency. In this episode of the Subscription League podcast, we delve into Sweatcoin's fascinating features, remarkable growth trajectory, and the strategies behind its massive user acquisition.

Who could have imagined that walking could become a source of income? It may sound unbelievable, but Sweatcoin makes it possible. Back in 2015, Sweatcoin burst onto the scene with an impressive $6.3 million in funding. Since then, it has experienced exponential growth, boasting an astounding user base of over 120 million people worldwide.

So, how does Sweatcoin work? The app, available for free, tracks users' daily steps. For every 1,000 steps, users earn one Sweatcoin, which can be exchanged also for Bitcoin. Sweatcoin has three primary revenue streams: advertising revenue, brand affiliations, and premium memberships.

Growth strategy

Sweatcoin employs compounding and growth loops to optimize user acquisition. By designing product-led growth functionality that incentivizes referrals, the app encourages users to invite their friends within a specific time frame. This approach increases the velocity of the growth loop and enhances overall yield.

The referral program and influencer scheme are the secret sauce in Sweatcoin's growth strategy. Users are given a carrot on a stick to invite their friends, with rewards dangled for higher numbers of referrals. Those who invite 20 friends gain access to the influencer scheme, where they can redeem invites for monetary rewards.

User retention

Sweatcoin categorizes motivations into three key groups: extrinsic rewards, social motivations, and intrinsic health benefits. By providing financial incentives through Sweatcoin rewards, creating a social environment for users to compare and engage with others, and offering insights into personal health achievements, Sweatcoin aims to establish long-term habits and retain users.

To optimize user retention, Sweatcoin tracks daily active users and differentiates between recently activated users and engaged users. The engagement breakdown helps Sweatcoin analyze user behavior and tailor communications to move users up the ladder of engagement.

Revenue generation

Sweatcoin generates revenue through various channels. The largest revenue stream is their rewarded ads experience, called Daily Rewards. Another revenue stream comes from brand affiliate deals in their marketplace, providing commission fees based on cost-per-action (CPA) agreements. Sweatcoin also offers a premium membership option that allows users to double their earned Sweatcoins, up to a fair usage policy of 50,000 steps per day.

The value proposition of Sweatcoin's premium subscription

Sweatcoin's premium monthly subscription, priced at $4.99, offers several compelling reasons to opt in. Premium subscribers have the opportunity to earn additional cryptocurrency through the app, making it financially attractive for those interested in Web3. Premium users also enjoy extra utility and benefits, such as custom app icons and early access to exclusive offers.

Creating engaging user experiences

Sweatcoin recognizes the importance of building a habit-forming app experience. They are currently working on a gamified feature that focuses on streaks and rewards. The first seven days of user onboarding are particularly crucial, and Sweatcoin aims to guide users through this period by encouraging boost usage and explaining the benefits.

Balancing acquisition and retention

Sweatcoin faces the challenge of finding the right balance between user acquisition and long-term retention. While users are more likely to invite others to join during the first seven days of their experience, Sweatcoin recognizes the importance of nurturing long-standing habits.

More about Rowan

Rowan Pereira is a dynamic growth-oriented professional with seven years of experience in product management. Currently serving as a Group Product Manager at Sweatcoin, she is fueled by a high-energy personality and a strong passion for promoting gender equity. Inspired by her father's tech background, she embarked on a similar path, finding fulfillment in making a positive impact. Notable achievements include spearheading an impartial campaign during the 2016 referendum and launching the UK's first regulated financial advice app, Multiply. In her current role, Rowan played a pivotal role in the unparalleled growth of Sweatcoin, acquiring 60 million new customers worldwide.

Episode 26 sneak peek

• On the rapid user-based growth: "One of the biggest levers that we had at Sweatcoin was our users themselves. Actually what we found ourselves doing was designing product-led growth functionality where we would optimize for referrals, incentivize referrals."
• On metrics to measure user habits: "I think it's really important to always measure your success against the frequency at which your user experiences the problem, right? There's no use being too obsessive with monthly active users because, well, guess what? You don't think about your daily step count on a monthly basis."
• On retention: "One of the challenges we've faced with balancing retention against acquisition is that we know that people are most likely to invite during those first seven days because they're excited about the product and they want to tell their friends about it."
• On competing with bigger brands: "I actually don't like to see Strava, et cetera, as competitors. I think that they are really inspirational apps and they have some phenomenal functionality and really great ways to keep people engaged and motivated. But they are very much geared towards that inspirational, athletic type of user, and I think Sweatcoin is much more for everyone."