profitwell paddle

BIG NEWS: Paddle acquires ProfitWell to "do it for you"

Retaining customers one bag at a time | Mike Lackman

Neel Desai Jan 19 2022

From kickstarting your morning to late night hackathons, coffee has a firm grasp on our culture. Addicting in nature, coffee should be an easy sell month over month... but if a delightful experience isn't hammered home, retention is getting tossed out with yesterday's grounds.

On today's episode of Retention Talk, I speak with Mike Lackman, CEO of Trade Coffee. We talk about acquiring customers the "right" way, retaining customers one bag at a time, and reducing friction in your cancellation process.

 

Listen now 🎧

RTN_ApplePodcast-01-1RTN_Google-01-1PTH_Spotify-01-1

 

 

 

 


 

Show takeaways

Key points discussed in the episode

 

We use data to make sure that we get people [the] coffee that they are guaranteed to love enough—that they'll trust us to pick the next bag for them.”     

 

                                                                                     - Mike Lackman

Acquiring customers the “right” way

At Trade Coffee, they use data to make sure they get people the coffee they're guaranteed to love. There's a bright line between doing what’s necessary to acquire the right kind of customers the right way, versus acquiring customers and figuring out how to retain them later. Every single interaction with your customer is either a value-add or a value-diminishing interaction.

A voice of the customer program (VOC) survey can very easily be a value-diminishing action. Asking for a lot of information takes time. But it doesn’t have to be a survey per se. Get creative. Look at or evaluate through a community forum, review sites, and more.

 

Retaining customers one bag at a time

Mike talked a lot about focusing on the experience had with the product on a single-unit basis. Did they like the taste of the coffee? Did the bag show up on time? Did they make some sort of customization to their order? By providing the best experience possible, retention becomes second nature.

 

Reduce the friction in your cancellation process, but don’t eliminate it entirely

Making your cancellation process difficult isn’t going to inspire a customer to come back down the line. Try to figure out why the customer is cancelling. You may not be able to change their mind at the moment, but you can figure out how to prevent future cancellations for the same reason.

 

Take Action:

Talk is cheap, but action backed by data is priceless. So, let's cut to the chase and hook you up with data you can use to inform your decisions.

Check out our 2021 Subscription Churn Benchmarks where we broke down data from 30k SaaS and Subscription companies to show how churn and cancellation rates are trending. We cover:

  • Churn by price point, vertical, region
  • Payment failures by location and seasonality
  • Impact of salvage offers, upgrades, reactivations
  • 57 other data slices across B2B and Consumer

Download the benchmarks here

 

 

If you’d like more insight into your own retention—or even a free retention audit where we can benchmark you with actual relevant data—reach out to me at neel@profitwell.com.

 


Do us a favor?

Part of the way we measure success is by seeing if our content is shareable. If you got value from this episode and write up, we'd appreciate a share on Twitter or LinkedIn.

 

This is a ProfitWell Recur production—the first media network dedicated entirely to the SaaS and subscription space.

 

By Neel Desai

Product Lead, ProfitWell

Subscription market insights you won't find anywhere else.