#1249 Kat Cole on How AG1 Made Hundreds of Millions of Dollars
Sep 27, 2023
auto_awesome
Kat Cole, President & COO of AG1, discusses topics such as focus, long-term thinking, solutions for unhappy customers, building trust, company culture, and advice for young founders.
AG1's success is attributed to focusing on a single product sold in one channel.
Maintaining a direct relationship with customers through a subscription-based business model is a priority for AG1.
Acknowledging and promptly resolving customer issues helps rebuild trust and reinforce commitment to quality.
Deep dives
Extreme Focus on a Single Product
Kat Cole, the president and CEO of AG1, shares how their business focuses on a single product sold in only one channel. They have built a complex web of nutritional supplements and solutions to create AG1, a product that combines 75 ingredients in a food matrix to provide a more effective and simpler solution for customers. Despite the temptation to expand their product line, they remain focused on their core product to maintain differentiation and deliver value to their customers.
Balancing the Long-Term Thinking of Distribution Channels
Cole discusses the decision-making process behind expanding into different distribution channels, such as retail or marketplaces like Amazon. While selling in alternate channels could provide convenience and speed for customers, AG1's primary focus is on maintaining a direct relationship with their customers through their subscription-based business model. By prioritizing the customer experience and protecting the quality of their product, AG1 aims to retain customer trust and continue providing value.
Dealing with Unhappy Customers
Cole shares a personal experience of handling a major product issue that resulted in unhappy customers. She emphasizes the importance of acknowledging the mistake, apologizing, and promptly offering solutions to resolve the problem. In this specific incident, AG1 had to address a faulty shaker bottle causing leaks and provide replacements to affected customers. By taking ownership of the issue and actively working towards a solution, trust was rebuilt with customers, reinforcing their commitment to quality and customer satisfaction.
Building Trust with Franchisees
Cole reflects on her experience as the president of Cinnabon, where she had to earn the trust of franchisees who initially questioned her leadership. By spending time working directly in the bakeries and consistently communicating and listening to the franchisees' concerns, she built trust and credibility. Cole emphasizes the significance of being present and engaged with stakeholders, understanding their perspectives, and collaborating to find mutually beneficial solutions.
Balancing Business Priorities and Stakeholder Engagement
Cole discusses the challenge of balancing business objectives with the needs and expectations of various stakeholders. She shares a story of navigating the decision to sell Cinnabon products in Costco, which created concerns among franchisees. By openly addressing franchisees' worries and demonstrating mutual respect, trust was maintained, and a successful business relationship was established. Cole emphasizes the importance of considering the long-term interests and goals of stakeholders while making strategic business decisions.
Kat Cole is the President & COO of AG1, they have built a business that does hundreds of millions of dollars in revenue off of a single product. This conversation with recorded from the BUILD Summit in New York, many attendees claimed it was one of the best conversations they have ever seen at a conference. Topics include the power of focus, long-term thinking, solutions for unhappy customers, building trust, company culture, balancing incentives, and advice for young founders.
=======================
Get Better Crypto Data: Do you want faster, easier crypto data? Sign up for Velo Data, a new product that we have been working on to solve this problem: velowaitlist.com
=======================
Auradine, a leader in web infrastructure solutions including blockchain, AI, and privacy, has unveiled the world's first 4nm Bitcoin mining systems, featuring breakthrough EnergyTune™ technology, setting new standards in performance and energy efficiency. The Teraflux™ product line from Auradine offers best-in-class performance, efficiency, and total cost of ownership (TCO), positioning it as the optimal choice for Bitcoin mining needs. With EnergyTune™, a patent-pending technology, Auradine's Teraflux™ systems enable rapid demand response and optimal energy usage, fostering a symbiotic relationship with electrical grids, and contributing to sustainable energy practices. Designed and manufactured in the US, Auradine's Teraflux™ product line not only ensures cutting-edge technology but also mitigates supply chain risks and provides increased supply chain resiliency. Visit www.auradine.com for more information the Teraflux bitcoin mining systems.
=======================
Pomp writes a daily letter to over 250,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
