Lessons from 23andMe’s Fall
Once the poster child of consumer genetics, 23andMe reached a $6 billion valuation by offering people a glimpse into their ancestry and health risks, all from a simple saliva sample. It was novel. It was accessible. And for a while, it was everywhere.
But now, 23andMe is making headlines for very different reasons: financial distress, mass layoffs, and growing concerns over data privacy.
In this episode of the The Pricing Guys Podcast, Avy and Michael dive into what went wrong, exploring the missteps that led the DNA-testing giant into crisis. While the story is specific, the lessons are broadly applicable to founders, marketers, and operators alike.
Key Missteps Covered in the Episode:
1. Limited Long-Term Value
The initial value prop was compelling but also largely one-time use. Once customers received their results, there wasn’t a natural reason to come back, making retention difficult.
2. A Subscription Model That Didn’t Fit
While recurring revenue is often the goal, applying a subscription framework to a single-use product created friction. Customers didn’t see the ongoing value and many disengaged.
3. Ethical Ambiguity Around Data Monetization
Health and ancestry data is deeply personal. 23andMe’s approach to monetizing that data, especially through partnerships with pharmaceutical companies, sparked ethical debates and eroded consumer trust.
At its core, this is a cautionary tale about what happens when product-market fit and go-to-market strategy fall out of alignment. The importance of clearly connecting value delivery with customer expectations cannot be overstated, especially in industries as sensitive as health and wellness.
Watch the full episode above to explore the deeper strategic lessons and what today’s companies can learn from 23andMe’s rise and retreat.
