It addresses the main benefit (“so you can easily see where work stands and hit your goals”) and includes a GIF directly in the email to visualize the changes in case customers don’t click through to the app. The email clearly describes what the new feature is-more importantly, it also explains why lapsed customers should care. And, since it’s only offered to people who have already bought the service, it’s statistically more likely to pay off.
#ICONVERT ICONS HULU TRIAL#
This email from Hulu employs this tactic by offering discounts to churned customers-not churned trial users. Offer special promotions to former customers Adobe conducted a similar study and found that customers who had made 2 previous purchases were 9x more likely to convert than a first-time customer. According to Paul Farris’ book, Marketing Metrics, repeat customers have a 60-70% higher chance of converting compared to other shoppers. In fact, former buyers are statistically much more likely to make a purchase.
#ICONVERT ICONS HULU FREE#
One way to get around this is to only offer discounts to people who have already demonstrated a tangible, bankable interest in your product-in other words, the customers who have already bought it.Former buyers are the best targets to receive discounts, as they’ve demonstrated real intent far beyond what free trial users do. Overall, discounts led to short-term gain that quickly diminished over time. Here’s what Price Intelligently found when they dug into SaaS discounts:Ĭustomers who came in through discounts had a lower willingness to pay, higher price sensitivity, churned at a much higher rate, and had dramatically lower lifetime value than the core group. Patrick Campbell, SaaS pricing expert and CEO of ProfitWell, explains: “Discounts are the laziest path to a customer conversion and have serious ramifications for your SaaS unit economics over the long term-to the point of reducing SaaS LTV by over 30%.”
Sure, you get crazy high click-through rates on discount emails, but that doesn’t mean you’re netting a profit from them in the long term. But applied without careful thought, they can also be deadly for your business. Proceed cautiously with discountsĭiscounts can be a super powerful way to reactivate users. Your resurrection efforts can pay off big time, as long as you keep the following things in mind. And it’s well worth the effort: In our 2019 report on the state of product-led growth, we found that compared to acquiring net-new customers, it’s 2X cheaper to upsell to an existing customer-and almost 8X cheaper to retain an existing customer than to acquire a new one. It’s just a matter of re-igniting that initial spark. Their inactive users have already demonstrated interest. There will always be some customers who switch to a different service, or who simply lapse and become inactive.Ī lot of companies make the mistake of assuming that their inactive users are gone forever-and in doing so they’re wasting a huge opportunity. That conversion rate jumps to 15.5% when free trial user are assisted by sales, but sales can’t and shouldn’t be expending resources on assisting every free trial user.Īnd just because a free trialer does convert doesn’t mean that they’ll necessarily adopt your product, stick around, and be willing to pay for further upgrades. This happens all the time-SaaS companies with a free trial report an average free-to-paid conversion rate of just 4%. Maybe they didn’t stick around after a free trial, for example.
#ICONVERT ICONS HULU FULL#
Chances are, you’ve got a whole graveyard full of dead users.ĭead, or inactive users, churn for a lot of reasons.
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