Reduce churn by offering a discount to stay subscribed

To enhance a product-led growth (PLG) model using Mobbin's retention tactic, implement a targeted discount offer when users attempt to cancel their subscription. This approach can significantly reduce churn rates, a crucial metric in PLG models.

By offering a 20% discount on the next billing cycle, you create an immediate incentive for users to continue experiencing your product's value. This tactic leverages loss aversion and hyperbolic discounting, encouraging users to stay engaged with your product. Ensure that the discount offer is presented at the critical moment of cancellation attempt, maximizing its impact on user retention and overall growth.

To improve conversion rates using Mobbin's retention tactic, implement a strategic discount offer at key decision points in the user journey. While primarily a retention tool, this approach can be adapted for conversion optimization.

For example, offer a time-limited discount to users who are hesitating during the sign-up process or those who have abandoned their cart. This tactic leverages the principles of loss aversion and hyperbolic discounting, making the perceived value of your product more attractive. By presenting a well-timed discount, you can increase the likelihood of users completing their purchase or subscription, thereby improving overall conversion rates.

To optimize your website using Mobbin's retention tactic, incorporate strategic discount offers at critical points in the user journey. This can be particularly effective on pages where users are likely to reconsider their engagement with your product or service.

Implement exit-intent popups or targeted messages that offer a discount when users show signs of leaving your site or cancelling a subscription. This tactic leverages loss aversion and hyperbolic discounting, encouraging users to stay engaged. Ensure that the messaging emphasizes the immediate value of the discount, such as "Get 20% off your next billing cycle," to make the offer more compelling and improve overall website performance.

To A/B test Mobbin's retention tactic, create two versions of your cancellation flow: one with the discount offer (version A) and one without (version B). Randomly assign users attempting to cancel their subscription to each version.

Measure key metrics such as churn rate, retention rate, and lifetime value for each group. Additionally, track how many users in version A accept the discount offer and how long they remain subscribed afterward. You can also experiment with different discount amounts or messaging to find the optimal configuration. Complement your quantitative data with qualitative feedback through user surveys to understand the perceived value of the discount offer.

Mobbin's retention tactic improves user experience by offering a valuable alternative at a critical decision point. When users attempt to cancel their subscription, presenting a 20% discount on the next billing cycle provides an immediate benefit and a reason to reconsider.

This approach leverages loss aversion and hyperbolic discounting, making users feel they're getting a good deal by staying. It can also make users feel valued and appreciated, potentially increasing their overall satisfaction with the service. By providing this option, Mobbin creates a more flexible and user-friendly experience, allowing users to adjust their subscription terms rather than simply cancelling outright.