Headspace
Consumer meditation subscribers cancel constantly. Headspace moved the product to HR departments at $6 per employee per month. Corporate retention hit 93 percent because no one ever measures whether wellness benefits actually work.
Andy Puddicom was a Buddhist monk who left his monastery to teach meditation through a smartphone. Headspace launched in 2010 with animated videos explaining mindfulness to people who had never meditated. By 2015, 10 million downloads. Revenue was modest. Then Puddicom pivoted from consumer wellness to corporate mental health. The consumer app charged 12.99 monthly or 69.99 annually. Churn was high because individual meditation habits are fragile. Someone meditates daily for three weeks, stops, cancels, resubscribes months later. The revenue graph looked like a sawblade. Headspace needed stable income. Enterprise solved it. Companies like Google and Starbucks bought licenses for their entire workforce at $4 to $8 per employee monthly.
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