Tiege Hanley reduces churn almost 44% with help from Cancellation Prevention
About
Founded by “regular guys,” Tiege Hanley makes skin care meaningful, accessible, affordable, and relevant – for regular guys. Their simplified skin care system is designed to help men look and feel amazing.
Tiege Hanley bottles evenly spaced to showcase their design
Challenge
Tiege Hanley’s simplified skin care system has struck a chord with customers, earning the company thousands of subscribers. But with their churn rate hovering near 20% each month, they were in search of a solution that could keep uncertain subscribers’ accounts active.
Solution
After putting their heads together with the team at Recharge to formulate a churn reduction strategy, Tiege Hanley landed on the Cancellation Prevention feature.
Cancellation Prevention is a no-code solution designed to retain subscribers attempting to deactivate their subscriptions. It uses customer cohort data and order data to create churn reduction strategies and present targeted cancellation reasons and winback strategies.
“The updates to Recharge with the launch of Affinity, along with features like Cancellation Prevention, are game-changing. They empower merchants with baked-in retention tools that help you to grow your business right out of the box.”
Cancellation Prevention
Cancellation Prevention is a no-code solution designed to retain subscribers attempting to deactivate their subscriptions. It uses customer cohort data and order data to create churn reduction strategies and present targeted cancellation reasons and winback strategies.
Implementation: How-to
Tiege Hanley’s Cancellation Prevention approach included the following steps:
1. Identify cancellation reasons
First they identified the most common reasons for cancellations from prior years of customer actions and distilled them into 4 distinct, concise options to be used in their new cancellation experience.
2. Implement Cancellation Prevention
Then they implemented Cancellation Prevention into their cancellation process, populating its prompts with custom brand copy, and connected each cancellation reason to a relevant retention incentive or alternative.
3. A/B testing
Finally, they began A/B testing cancellation alternatives for different reason codes: 10% discounts versus 15% discounts for customers canceling due to cost, and the option to skip an order versus the option to delay a shipment for customers canceling because they had too much product already.
Results
Cancellation Prevention made an immediate impact for Tiege Hanley: It prevented 11.6% of intended subscription cancellations, helping drop the company’s churn rate down to just 12.3% in the 3 months following its implementation—over 43% lower than the same period the year before.
