Russel Brunson started Clickfunnels in 2014 after spending 10 years selling online marketing courses.
By 2018, their ARR was $66m…
With $0 outside funding.
How?
This posts explains…
Churn is the silent killer of SaaS businesses.
If 10% of your customers stop paying after 3 months, at a monthly price point of $100, this gives you $300 to:
– Pay your server bills
– Pay your team
– Invest in support
– Acquire the customer
– Take profit
From our research, we’ve found that the majority of SaaS businesses will only breakeven on any given customer after 6 months.
So what can you do to stem the flow of churning customers?
There are many methods, and here is one… expertly executed by Clickfunnels.
As you head to cancel from inside your account:
You see a video from Russell with a sincere request for feedback with a multiple choice question:
This is now pretty standard for SaaS businesses, but the next part is not…
Each of those sends options to send you to a unique landing page with another video from Russell aiming to dispel your objection.
(To check out each specific landing page head here: https://ignite.clickfunnels.com/cancel-me)
Our personal favorite route down this maze is through the “too expensive option”:
You get redirected to a landing page where Russell explains that to get all the features provided by Clickfunnels, you would need 12 separate applications.
They then show this beautiful infographic demonstrating the point:
And then offer the tool for FREE for 6 months?
To claim that offer, you head down a separate funnel:
And can pay $997 for various different information products along with a further 6 months of Clickfunnels:
But they’re not selling 6 months of Clickfunnels with a couple of “how-to” videos, they are selling the “Funnel Hacks System” 😉
And like software, the gross margin on those information courses are approximately 90%.
Incredible.
What did we learn?
- When someone is about to churn, make an honest request for feedback.
- Consider making offers in response to that feedback that could resolve their issue and potentially retain their customer.