Cloud-Based Video Editing Software
[Client Name Omitted]
- Program Objective: Improve Paid Subscription Conversion Rates from Free Subscription Users, Reduce Churn
- Sectors: B2B Product/B2C Product
- Industry: Web & Mobile Software Application
- Technology Mix: HubSpot for Website, Blog, Email, Landing Pages, List Segmentation, Marketing Automation , Event Tracking, and Analytics. KISSmetrics for User Activity Monitoring and Data Visualization. Salesforce CRM for Sales Tracking.
- Start Date: Q3 2012
Background
The company had been developing and iterating their web and mobile video editing solutions for both consumer and business markets for 2 years. They sought out our services after winning a first round of funding. After meeting with the company’s executive team, we learned that most of their marketing had been heavily PR and cross-promotional focused. While the campaigns drove over 250k new users, the users were not upgrading to paid subscriptions or being monetized in any way.
Analysis Findings
Our first priority was to ensure proper tracking was in place and begin looking at the user metrics to uncover customer trends, segments, conversion opportunities, and value perception issues. The company was collecting website and product metrics through Google Analytics, however, this didn’t attribute behavior to individual users. To view information at the user level, or pull lists to send messages to a specific group of users, a product engineer had to manually generate reports for each set of cohorts. The analytics setup needed to provide real-time customer intelligence for marketing to understand how and why customers use the application. KISSmetrics was implemented for user intelligence and we were able to compare the behavior patterns of paying users to the non-paying users.
Path Forward
Our growth strategy included plans to profile ideal customers for each of the paid subscription product segments. We started by identifying model customers in the database and then surveyed and interviewed those users to understand the journey that led to the decision to purchase, how the product is being used, and what benefits have been experienced since implementing the application. From these insights we were able to understand how different types of users derived value from the product, pricing thresholds, and unique conversion drivers. We used the criteria from the ideal customer profiles to create segmented lists within the user database. 3 top segments were selected to develop highly focused conversion programs around.
Action Summary
- Assessed the database of 250,000 users. Segmented into groups based on user criteria and in-app behavior
- Created personalized solution/benefit positioning for top 3 segments (about 30k users in each segment)
- Developed subscription upsell conversion campaigns for each segment (limited-time discount offer, A/B version landing pages, promotion emails to send to segment groups, in-app dashboard messaging, remarketing ads for non-converting users)
- Updated user experience on the website to align with market segments and ideal customer profiles
- Implemented offers and landing pages for targeted upsell campaigns
- Set up automated drip email campaigns for nurturing users to upsell
Results Within 7 Months of Implementing Strategy
- Total users reached in all 3 campaigns = 90k
- 8% conversion rate
- Average deal size (gross) = $120/year
- Over $850k in revenue
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