We got our churn rate from a whopping 12.3% peak down to 2.7%.
I'm the founder of Stagetimer, a bootstrapped $10k+ MRR B2B app and this is how we reduced our churn sustainably in 3 steps, and the lesson learned... 👇
Step 1:
Analyzed why people churn. Found no. 1 reason is usage pattern of our product. Most people use it for a single event and then cancel.
We already had a dedicated 10-day "Event" plan, but users preferred the 30 days of the monthly plan.
Step 2:
Asking ourselves "Is churn bad?"
A: Yes. Of every 10 users, one forgot to cancel and either got mad at us and/or requested their money back.
-> Huge extra customer support and refund fees
Step 3:
We made changes to pricing:
-> Remove monthly subscription
-> Extend "Event" plan to 30 days (no recurring payment)
-> Keep yearly plan as is
Result:
Churn went down from 12.3% to 2.7%.
MRR growth down also, but still net positive.
Overall revenue stayed the same.
Less customer complaints -> More happy customers!
Lesson:
Everyone wants subscription revenue but in the long run it's better to choose the type of pricing that works best for your users.
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