Types of Drop outs
- Every stage of the sales funnel that results in better quality
customer also has dropouts. It is important to understand the
reasons for dropouts & take necessary actions based on
that.
- Here are a few common reasons for dropouts and it may not be
such a bad thing if it happens due to self selection:
- Casual signup There is no need for the service and user
signed up to "just" explore. These users tend to not verify emails
OR setup the basic configuration required to start using the
application. This is a great way to qualify the users.
- Not for me after exploring the product the prospect may
decide that this is not what they were looking for. The product
design / configuration itself can be a great way to help them
understand this.
- Not now A qualified customer but not having an immediate need
should be included in a nurturing cycle with an occasional
educative email to have their mind share.
- Need handholding When we start scaling business to late
majority of customers, many of them need handholding to start using
the product, unlike the early adopters. It is important to have the
services team internally to help with setup or have partners who
could help with integration / setup. Internal service could be
charged separately as setupfee or bakedin as part of pricing. It
is important to understand how the unit economics work out long
term and not lose a customer because they need assistance.
- Losing to a competitor This could be due to lack of enough
peer validation, better fit of competitor's product, better pricing
or any number of reasons. It is important to get a chance to
converse with customer over phone / email to understand the
objection to fine tune the offering regularly.