Open Farm Reduces Churn nearly 29% with Cancellation Prevention
About
Open Farm was born out of Jacqueline Prehogan &Isaac Langleben's quest to find a nutritious dog food that met their standards for animal welfare, sustainability, and transparency. A decade later, Open Farm provides pet parents across the US and Canada with top-of-the-line pet food, crafted with meticulously sourced, nutritious ingredients that don't compromise on the brand's mission to “Do Some Good” for animals and the planet.
Photo of a dog running through a grass field at sunset
Challenge
With their customer base growing strong, Open Farm placed a heavy emphasis on retention. Subscription churn presented an opportunity for improvement. And the team wanted a churn reduction solution that could target customers who initiated the cancellation process—and do so without adding a huge burden to the team.
Solution
Working with the Recharge team, Open Farm decided to implement Recharge’s Cancellation Prevention feature, since it would not only enable them to offer customers alternatives to canceling but also A/B test those offers against each other to find the most effective ones.
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.
“To meet our growth targets, it's essential that we match strong growth performance with retention and were eager to test Recharge's retention tools as soon as they became available. When we saw they were outperforming our previous vendor, we made the switch. A decision we have been happy with ever since. Recharge has continued adding new features to the program, making it easier for us to innovate and achieve even better results. We're excited to continue testing and see where it takes us.”
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
Open Farm'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 behavior and distilled them into 10 distinct, concise options to be used in their new cancellation experience.
2. Implement Cancellation Prevention
Then, the team deployed Cancellation Prevention into their cancellation process, which offers customers trying to cancel various alternatives. Depending on their response to the cancellation survey, customers might be offered a discount or the option to swap products, skip an interval, or delay shipping.
Results
Since implementing Cancellation Prevention, Open Farm has seen its churn rate improve significantly. They’re saving 12.6% of customers who initiate the cancellation process, and since adding Cancellation Prevention to their retention strategy, they have effectively reduced churn by 28.7% year-over-year. And with the ability to A/B test their cancellation offers, Open Farm will be able to continually refine the process and improve its retention even further.
