With help of segmentation, personalized cancellation flows and gamification, Livingood Daily reduced their churn rate in ~4 quarters.

Published on
17 September 2023
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About brand and subscription migration history

Livingood Daily is a high-growth supplement brand that just celebrated their 4-year anniversary on Shopify.

Livingood Daily’s store was one of our first big migrations done from Recharge. We had migrated 130k subscribers through an API based migration. Here is how we completed this massive migration in just 22 days.

In the start of 2023, they shifted away from Shopify to an external platform. After a couple of months, they migrated back to Shopify x Loop.

Immediately after their second migration, our customer success manager, Nihal Baldwa, started working closely with their eCommerce and customer experience team to kickoff subscriber retention campaigns.

Retention campaigns after migration

We started off the retention efforts with three initiatives:

  1. Exit survey & analysis of cancellation reasons
  2. Experimenting with different ways of engaging with subscribers
  3. Gamifying the subscriber journey with the right reward

Impact on the churn rate after implenting these three initiatives- The overall churn rate was reduced from ~10% (when they migrated back to Loop) to 2.26% (at the time of writing this case study)

An important point to note: Their product is very effective. That’s why all of these retention ideas worked for their brand.

Here is how we went about setting up all these retention ideas together with the Livingood Daily team.

1. Exit Survey & Analysing cancellation reasons

First of all, we set up an exit survey to collect the reason behind why subscribers wanted to discontinue.

Secondly, we looked at the reasons behind cancellations from different dimensions.'

The top two evident reasons behind cancellations were Already have enough stock and Too expensive to continue.

We also did an in-depth analysis of the detailed cancellation remarks within Other reasons.

We found that majority of the subscribers loved the product but they still wanted to stop because they wanted to save money and then come back later.

Based on a word map of the cancellation remarks under Other reasons, DLG team also experimented with the language of the cancellation reason options inside the exit survey.

We saw that most of the cancellations happened right after the first order or in between 2–4 orders.

This data tied into the results of the exit survey: Most of the subscribers felt that they had enough product on hand after the second order

may cancellations order-wise

Based on the analysis, we decided to create personalized retention campaign for two types of subscriber segments

1. Subscribers that had completed 2+ orders and feel that they have enough stock

2. Subscribers who found it too expensive to continue their subscription

Our Slack channel with the DLG team is always buzzing with ideas on how to engage with subscribers. Dr. Livingood is a hands-on founder and likes to take part in these discussions.

We told him that the Livingood Daily team can easily embed videos inside cancellation flows. He loves creating video content for his customers. So he recorded a personalized video message to engage with target subscriber segment and tried to convince them to continue with the subscription as this has a long-term positive impact on their health.

Immediate impact of the video

The churn rate went down by 13% in just 30 days of adding the video

There was an uptick in the number of subscribers opting for alternative actions.
Almost 4% subscribers (from the target segment) decided to pause, skip or delay the subscription instead of cancelling.

This also inspired other founder-led brands to add a personalised video to their cancellation flows. They also saw similar resuls: ~25% reduction in churn.

Livingood Daily team created two types of incentives to gamify the journey of the subscriber segment with number of orders completed as 2

1. Additional 5% discount on upcoming order

With help of Loop Flows, Livingood Daily team set up a rewards system to give an additional 5% on top of the existing subscription discount of 15%- A total of 20%.

This discount gets automatically applied on the third order of the ongoing subscription.

This was pretty easy to execute with the help of IF-THEN conditions inside Loop Flows and took less than a minute to set up. They also enabled a secondary milestone reward for subscribers who completed 6 orders with them.

Communicating the reward to the subscriber segment

Through personalization and easy customization options inside our customer portal, Livingood Daily set up a banner that would only be shown once a subscriber completed 2 orders.

They added a motivational message for the subscribers so that they continue with the subscription even if they had enough product on hand.

Impact of the reward on the upcoming order

There was a significant increase in the number of subscribers now completing higher number of orders as compared to the previous period (before the reward was not setup)

There was a jump of 9% in the proportion of subscribers completing 5–10 orders after the implementation of the reward system.

Clearly the incentive programme was pushing customers to continue on for a longer subscription duration.

2. A one-time discount incentive of 10% after exit survey

From the exit survey analysis, one of the top three reasons for cancellation was finding it expensive to continue.

In order to incentivize these subscribers to continue with their subscription, Livingood Daily team decided to offer a one-time coupon code that would give them 10% off only on their next order.

They used the offers section inside Loop’s cancellation flow to execute this retention idea

How the final personalized cancellation flow looked in action:

Takeaways for other DTC brands

For a DTC brand operating at a large scale (similar to Livingood Daily), it’s really important to understand the reasons behind cancellations. A customised exit survey can easily help you uncover those.

Then based on the analysis of those reasons, it’s important to keep experimenting with different forms of engagement with subscribers- Personalized videos, right rewards system or surprise your customers with gifts on certain occasions.

After selecting the right form of engagement for your store, the final step should be to track the impact of that engagement on your churn rate. All of this is possible inside Loop.