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BEAM (Be amazing) supplements is a popular DTC brand from the founders of Campus Protein (a popular 12-year Shopify brand that migrated from Recharge to Loop).
They are a multi-category supplements brand ranging from pre-workout to gut health to whey protein. What makes them unique in the world of DTC supplements, is that they control the entire process of creating the product right from sourcing raw ingredients to flavour creation and then manufacturing.
They migrated from Recharge because their team tried out Loop and realized that Loop is a similar platform to Recharge Subscriptions.
Their CEO and co-founder, Russell Saks alongside the CX team were getting concerned with their increasing churn rate numbers.
So Mike one of the co-founders recorded a video message for the subscribers (a deeply personal message) to help bring down their subscription churn rate.
At Loop, we engage in continuous conversations with our merchants about the health of the subscription business- Subscriber growth, AOV and churn/retention.
In a recent weekly catchup call in July, we discussed churn rate with the BEAM team.
Inside Loop analytics, they could see that their cancellation numbers were hovering between 10% & 14% in the last 5 months, above the industry average.
They wanted to learn how they could utilise Loop’s retention features to bring down these numbers.
On an average BEAM supplements were seeing around ~200 cancellation attempts in a month. We first looked into the reasons related to the attempts.
This would help the BEAM team in crafting a relatable message that would resonate with subscribers looking to cancel. And one of the ideas was to create a video message that would automatically play once the subscriber attempts to cancel.
To prevent subscribers from cancelling, one of their co-founders, Mike recorded a true heartfelt message as the founder.
In the recording, he candidly spoke about his battle with cancer and emphasised the core motivation behind starting BEAM – to empower people to lead their healthiest lives. He also expressed his gratitude towards the customers for being a crucial part of BEAM's success.
We had already discussed that one of the top reasons behind cancellation was “Already have enough stock”- He touched upon this fact in the video.
He suggested to the subscribers that if they already have enough quantity of one product, they could easily swap it with any other category and shared why a world-class subscriber experience matters to the BEAM brand.
Setting up this message inside Loop took less than a day.
We ideated with the BEAM supplements team on the script. Mike just took 2 days to create this video- A founder has to wear multiple hats to ensure their brand’s sustainability and success
We made sure the whole experience was optimised for mobile.
Just 3 weeks of going live with this video, the cancellation rate has come down to 7.83% from 10.09%, a reduction of ~30%
How?
Because of the video message inside the portal, the cancellation attempts have come down from to just ~100 in July.
Subscribers connected with the message shared inside the video.
We are monitoring the metrics closely with the BEAM supplements team.
Mike is a co-founder fueled with passion. He is willing to do multiple creative angles inside the cancellation flow video. A/B testing is the key to figure out what messaging sticks with the subscribers.
As per a HBR article, if DTC brands want to grow, brands must start having direct communication with their customers as and when they experience their products.
This is a great way to have that direct communication with subscribers when they are not satisfied with product experience.
Also for other founder-led brands, this is a great retention campaign that can easily be replicated.
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