We took a look at a living, breathing client of LessChurn to determine just how they were able to save customers and revenue by using our web app.
These days, you just don’t know what you are getting when you sign up to a website. It asks for your email, your contact details….your blood type…ok, maybe too far?
Importantly, it asks for your credit card details, and only promises to debit the account in 14-30 days from now. We all know the feeling of handing over those precious details without knowing just what you are getting yourself into.
What are you getting when you give all of this over? The actual product or service that you were signing up for?
You sometimes never know.
Well, we thought we would make things a bit simpler for you. We decided to have a look at what we actually did for a customer, and how we assisted in reducing their churn and what they got out of it!
The client, NinjaOutreach, provided us with some of their stats to dig into, in order to paint a picture of exactly how using LessChurn saved them $18,000 over two years.
You read it right; real-life, tangible results. Results that you can look at and touch and feel. Results that give you that warm, fuzzy feeling inside…
A Little Bit About LessChurn & NinjaOutreach
LessChurn, for those of who you don’t know, is perhaps the world’s simplest churn reduction app.
You install a form that integrates with Stripe and your cancellation button inside your application, and when pressed, it presents users various detours instead of cancelling such as extending their trial or applying a discount.
Additionally, inside the app, it contains a lot of great data and stats about your users and your churn.
NinjaOutreach, on the other hand, is an influencer outreach software. It’s a platform that allows organizations to extend their marketing reach by making use of influencers who already have a large social reach.
In essence, organizations can reach out to social celebs and ask them to endorse their products.
Brands have been able to reach vast new audiences by using an influencer to mention them on social media.
NinjaOutreach allows clients to easily find thousands of influences that would be relevant and assists in creating targeted campaigns for them.
Regarding LessChurn, NinjaOutreach, chose four different detours to offer to their clients when they chose to unsubscribe. They included:
- I would like to extend my trial as I didn’t get enough time.
- I don’t have time to use it, can you do it for me?
- I want a discount as it costs too much.
- I want to cancel it, please.
Here’s a mockup of what it looks like to a NinjaOutreach subscriber:
Here’s what each option does.
- I would like to extend my trial – extends a user’s trial by an additional 14 days
- I don’t have time to use it – Cancels the account and redirects the user to NinjaOutreach’s services page
- I want a discount – Applies a 15% permanent discount
- I want to cancel it – Cancels the account and redirects the user to the home page.
And additional option (not shown above, but occasionally used), was “I’m ready to quit, I want to talk to a founder” which would fire off an email to a founder to get in touch with the user ASAP.
Now, with the form in place and two years of data to crunch – let’s see what actually happened.
Cracking Into The Numbers
First, let’s start with the basics – did people actually chose a detour over cancelling, and if so, which ones did they choose and how much money did it make NinjaOutreach?
As it turns out, with over 2k cancellations in two years, 326 people used some sort of a detour option. Out of those, 100 ended up spending money with NinjaOutreach, totalling over $18k.
Wow – that’s an average of $180 per saved customer, and a lot of money overall!
As it turns out, hundreds of people were at least willing to continue with the product under slightly altered circumstances, and over 30% of them ended up paying something to NinjaOutreach after doing so.
31.5% in fact.
So what detour did people actually choose?
And as absolute numbers…
Overwhelmingly, it looks like people just wanted to extend their trial. Over 270 people out of the 326 actually. For them, 14 days just wasn’t enough.
Which is fascinating, of course, because many software products allow some sort of a trial, and as we can see, there is no one size fits all glove when it comes to trial lengths. For some people, 14 days is more than enough, but for others who maybe don’t get started right away, it’s not.
So what’s the right thing to do?
In our opinion, it’s to offer in-app extensions, of course. Outwardly, you have to lead with one trial, but inwardly, you want to be able to smartly segment your customers into who is ready and who isn’t, and offer a trial extension to those who aren’t.
But let’s double check that people who extended their trial, or did other detours, actually went on to pay money.
As you can see in the graph above, the dark blue bars indicate how many people who selected each detour went on to spend money with NinjaOutreach.
Proportionately, those who selected I would like to extend my trial, didn’t convert as high as those who selected the next most frequent option, I want a discount.
This makes sense, because if all you are concerned about is the price and not the actual functionality of the tool, getting a discount seems like it would make you more inclined to buy, than someone who just got an extra two weeks of their trial, but hadn’t fully bought into the tool yet.
So, your next question is – “How long did people actually stick around for?” i.e how much money did this generate?
Luckily, we have that $18k of extra revenue broken down for each of the three detours that were primarily used (I want to talk to a founder generated no additional money).
These graphs show what percentage of people ended up paying after choosing the detour, and how much money they’ve paid so far.
While extending one’s trial may not have had the highest detour to conversion ratio, inevitably because so many more people opted for that detour, net net it had the largest revenue saving effect on NinjaOutreach.
This is why it’s important to have all your detours available – because you never know which one is going to have the most impact, and it could be staggering!
Also, it’s important to note that the length of time that a customer stuck around after opting for a detour varied greatly.
For example, while the least someone paid after a detour was $29, the most was, incredibly, $1,770.
Imagine if that customer had cancelled simply because they didn’t get enough time to try out the software…
Or worse – if you had waited to set up your churn form and didn’t give them the option!
Interestingly, the second highest revenue generated was $1,485, and the same detour was used; “I would like to extend my trial as I didn’t get enough time.”
I guess that one’s a winner!
On the contrary, the highest someone paid after clicking “I want a discount as it costs too much” was $802, which is also quite good considering how relatively few people opted for this detour, but arguably makes sense as people who chose this option are more likely to be price sensitive users and therefore less sticky.
Still, I guess once you’ve been given a discount, it makes it that much more painful to cancel, because you know you won’t get a deal like that again…
Here’s the percentage breakdown of what saved customers ended up spending with NinjaOutreach over the course of two years.
Note that these numbers represent only the current state, but people are STILL paying customers to this day so the higher categories are likely to grow in the future.
What Did NinjaOutreach See?
During this time, did NinjaOutreach actually know what was going on?
The backend of LessChurn allows the client to have a clear overview of the results, as well as the ability to dig into the data, and inevitably make changes to their form as they see fit.
Here are some of the charts that NinjaOutreach would see in its account.
Hovering over the dates allows you to have even more insight into the activity on your account each month so you can track the progression of your churn and how each detour is fairing.
The platform allows you to delve even further and examine:
- What If’s;
- Users In Jeopardy;
- Deleted Users.
All of these will provide you with more insight into just who the customer is and what their status is with your site, so even if you don’t have someone writing case studies for you on the regular, you know what’s really going on.
Oh, and what about all those people who did end up cancelling – did we get any info from them?
Heck yeah we did!
Actually, we may have gotten something even more valuable than money: feedback.
Here’s what a snapshot looks like:
Given this, NinjaOutreach has the insights necessary (over 2k of them in fact) to improve their user experience and application to prevent people from wanting to cancel in the first place, which is arguably the most important finding.