Case Study: YoDerm
Despite having an excellent service, a medical consultation business will often struggle from high acquisition costs and low customer life-time value. Learn how this B2C startup overcame these challenges to succeed.
ACCOMPLISHMENTS:
4x revenue in 16 weeks
3x customers while decreasing CPA by 30%
Closed $1.6M seed round within 30 days after accelerator
ABOUT THE COMPANY:
YoDerm provides on-demand consultations from online dermatologists.
THE CHALLENGE:
How do you increase revenue while facing high acquisition costs and low customer life-time value?
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Given the nature of healthcare decision-making, many startups find that the costs of customer acquisition are relatively high compared to most B2C businesses
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For the average, relatively healthy patient, healthcare isn't consumed at high frequency or regularity; how do you generate recurring revenue despite this?
THE RESULTS:
4x revenue in 16 weeks
Implementing strategies such as bundling and up-selling increased both the average transaction value and the likelihood that consumers would become loyal repeat-customers. These factors ultimately quadrupled revenue.
3x customers while decreasing CPA by 30%
Meticulous segmentation of prospects (consumption history, point in sales funnel, etc.) and specific, targeted marketing led to a greater volume of customers at a lower average cost-per-acquisition.
Closed $1.6M seed round within 30 days
Frequent pitch-preparation and feedback from experts at 500 Startups, in addition to a great deal of hustle from YoDerm's founders, led their team to close the seed round within 30 days of completing the accelerator program.

Benjamin Holber,
Co-Founder
500 provided the framework we've used to grow the business by 7x in the past 9 months. They won't spoon-feed you and they won't lie to you. Soak up their experience, collaborate with your batch, and work your ass off to succeed

Chris Minnich,
Co-Founder
It's similar to Alcoholics Anonymous: 'the system works if you work the system'…also there's free coffee and real people confiding in one another on a daily basis :-)

Ryan Hambley,
Co-Founder
500 Startups helped us solidify our growth framework: experimenting, prioritizing, thinking about growth in more scientific fashion. That, plus it granted us access to a network of investors, hustling founders, and helpful mentors that jumpstarted our fundraising process.