User Feedback and New Pricing Strategy
After analyzing the following user reviews, I noticed a consistent user behavior pattern in signing up for background check based on immediate intent. This demographic of users who will use BeenVerified for a single to a handful of purposes in one sitting before canceling their monthly subscription. Examples: Finding long lost brother; verify background information about themselves; background check a partner. This SaaS churn process contributes to the high cost of acquisition and the cost of customer support. In addition, these users write reviews which is at a long term cost to BeenVerified’s marketing and brand recognition.
I proposed a per-use purchase background check as an user option. User will be given alternative to subscription unlimited use with an one-time purchase of 10 background check queries. Based on the hypothesis that there is a demographic of users with use cases that only need a few background checks. Without requiring users to opt in to a membership (shown here,http://support.beenverified.com/hc/en-us/articles/222412008-I-don-t-want-a-subscription-I-only-want-to-run-one-report-), it will improve overall user satisfaction. This experiment can be conducted via A/B testing with incoming visitors from targeted Google Ads. After each usage, BeenVerified should deploy a NPS survey to capture feedback of each experience.
CHURN & COHORT ANALYSIS
Based on my research on BV’s digital presence (https://www.evernote.com/l/AQW17M5bKehNLZw8s5Y1KPhddb8T4_VG2mI), we can use SimilarWeb’ data on the monthly visit 6 Million with 33% bounce rate. We can calculate the actual visitors and we can assume the engagement rate is 25% in using the homepage’s search feature. We can also propose conversion rates for purchasing 1-month, 3-month, 6-month, and the monthly churn rate as 15%. We discover $63 as an average LTV per customer.
With $63 as an average LTV, we also have to account for customer support cost for cancelation, and refund, as well as long term brand effect cost if it is on brand effect cost. Consider per-us bundle, if successful, we can consider to market users via re-targeting and email campaigns to get repeated purchase.
Tags: Product Analysis, Entrepreneurship
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