Involuntary Churn
Talk by Elena Verna, SVP Growth, SurveyMonkey during WMD 2016.
1. Elena Verna, SVP Growth, SurveyMonkey
1.1. https://www.linkedin.com/in/elenaverna
2. Retention is everything
2.1. the older your business -- the higher % involuntary churn will be
2.2. Leaky bucket - no good
3. Churn
3.1. Voluntary
3.1.1. user: "I am done -- proactively opting out"
3.2. Involuntary
3.2.1. Payment failure
3.2.1.1. user did not mean to churn
3.2.2. = renewal payment failure
3.2.2.1. majoriy: annual subs affected the most
3.2.3. What % involuntary
3.2.3.1. 60% of 1st term
3.2.3.2. 40% of 2nd term
4. Annual subs
4.1. What your process may look like
4.1.1. Renewal: payment fails
4.1.2. Day 5: 1st collection attempt
4.1.2.1. email & try
4.1.3. Day 9: 2nd attempt
4.1.3.1. email & try
4.1.4. Day 12: 3rd reach out attempt
4.1.4.1. email
4.1.4.2. no collection
4.1.5. Day 16: email + try
4.1.5.1. Payment collected
4.1.6. Service continues during reach out period
4.2. How long should you continue trying
4.2.1. 20 days for monthly subs
4.2.2. 45 days for annual subs
4.3. Reasons for decline
4.3.1. soft
4.3.1.1. probability valid
4.3.1.1.1. insufficient funds
4.3.2. hard
4.3.2.1. probability invalid
4.3.2.1.1. low chance of success
4.4. 50% Success Rate
4.4.1. will not recover everyone - some will not want to
4.4.2. 60% will be user driven
4.4.2.1. KPI --> make an action for user to update payment
5. Optimization
5.1. Email
5.1.1. Frequency
5.1.1.1. extremely important -- reminder min. 1 per week "don't interrupt your service"
5.1.1.2. Message / CTA
5.1.1.2.1. Message: friendly
5.1.1.2.2. CTA: take user into payment service directly (seemless)
5.2. Site
5.2.1. Persistent notification