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Listen "#158 - Boost LTV or Die Trying with Neel Desai (Part 2)"
Episode Synopsis
In this episode of The Revenue Cafe Podcast by Breadcrumbs Hot Takes Live, Neel Desai, Director of Product at Paddle, delves into the secrets of reducing cancellations and increasing customer loyalty. He highlights the significance of handling payment failures and the challenges in the evolving landscape of payment gateways. Neel provides valuable insights and practical tips, such as avoiding email notifications before payment failure, optimizing retries, using plain text emails, and localizing communication for global customers. The discussion emphasizes the importance of experimentation and offers strategies for optimizing term lengths and pricing to enhance the customer experience.KEY TAKEAWAYSReduce cancellations by 10-20% through effective salvage offers and offboarding.Payment failures are a major cause of customer loss, with 130+ unique reasons for card failures.Email notifications before payment failure can lead to higher cancellations, so use in-app messaging instead.Implement your own retries, targeting specific times for maximum success.Plain text emails perform better for payment failure notifications, resulting in 7-10% higher conversion rates.Localizing communication in the customer's native language can improve retention by 10% or more.Experimentation is key – aim for one experiment a quarter to continuously improve customer retention.Month-to-month pricing can reduce friction in the buying process, leading to higher conversion rates and easier upsells.HIGHLIGHT QUOTES"Payment failures are the largest single bucket of lost customers.""Aim for one experiment a quarter. If it works, great, fold it into the default experience. If it doesn't, kill it.""Month-to-month is such a hack for enterprise products because it reduces the risk, and people can try it.""Most people just want to get in and play with the tool and make sure it gets value."You can find out more about Neel Desai in the link below: LinkedIn: https://www.linkedin.com/in/neelvdesai/HOST: Gary AmaralGUEST: Neel DesaiBreadcrumbs Podcast
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