About The Company
The client is a company operating with a subscription-based business model and they partner with Vertex for retention campaigns. The subscriber base is significant, comprising approximately 12 million subscribers, with around 20,000 interactions handled via the Vertex site.
Problem Statement
Initially, the retention rate stood at 34%. However, a change in U.S. government policy prohibited companies from applying cancellation charges for any subscription- based model. This regulatory change resulted in the retention rate dropping to a concerning 9%.
Our Approach
The client faced several operational challenges during the festive sales season, including:
Shifted focus from policies to value, emphasizing savings and 2-3 months free subscriptions.
Enhanced Benefit Communication emphasized unique product features and personalized offers based on customer usage.
Revised Engagement Tactics Provided tailored scripts and used data analytics to proactively engage high-risk customers with customized retention plans.
Consistent Feedback Loop Conducted weekly performance reviews and gathered customer feedback to refine strategies.
Time for Re-evaluation
Initiated once the customer verbally commits to continuing the contract after accepting the offer.
Subscriber Details
Approx. 12M total subscriber base; ~20K volume handled by our site.
Inbound vs Outbound
90:10 ratio; Retention rate for outbound ~20%.
ARR (Annual Recurring Revenue):
Approx. $6.7M monthly.
Challenges Identified
Customers now had no financial disincentive to cancel subscriptions, making retention significantly harder.
The existing retention strategies relied heavily on counteracting cancellation fees, which were no longer applicable.
It was critical to rebuild customer trust and emphasize the value of the subscription in a highly competitive market.
Subscription Types
Monthly
Paid monthly, no contract obligation
ABM
Annual Billed Monthly.
PUF
Paid Upfront.
Retention Rate= (Total number of Retained customers/Total number of cancellations done)*100
