Challenge: Revenue stagnation
The Client, an e-commerce platform, was doing all the right things but just couldn't fix the revenue stagnation. Every time they tried something to pull in more customers, they ended up losing just as many. They couldn't nail down what was going wrong, so ASAO DS was brought in to help address these problems.
Diagnostic: Identifying core issues
Redefining success metrics: We included new metrics like churn by decision date, churn by the last paid day, and churn for bookkeeping, making sure they were clear to everyone and consistently applied across the company.
Customer behavior research: We revealed a direct link between feature usage and customer retention. Patterns indicated that customer engagement typically declined months before they abandoned the service.
User interviews: Direct discussions with users helped uncover unreported bugs that everyone just assumed were part of the design. Plus, we found out some customers were leaving for a competitor who had a feature our client didn’t offer.
Identifying user pattern: We found a cohort of users who engaged with the platform on a project basis—once their projects were completed, they typically cancelled their subscriptions within a month or two.
Solutions: Tech and Features Fix
New subscription model: Responding to the insights, the Platform's team rolled out a flexible subscription model tailored for project-based users which significantly reduced churn.
AI improvements: We helped the Platform develop and launch an AI-powered text helper that not only filled the gap but actually outdid what the competitors had.
Results
These actions resulted in a 15% increase in revenue. We armed the platform with the tools to keep tabs on customer analytics and ongoing improvement of retention rates. The Platform has not just recovered – it's now set up for continued growth.