Alex Hormozi says the best way to keep a high-paying customer who isn't using your product is to offer them a cheaper plan. It feels backwards, but the data shows it increases how long they stay with you because they see you actually care about their interests.
A really interesting insight I got from one of Hormozy's recent Q&A videos, I don't know, is he was talking about how they were improving retention at school. And he said one of the most effective things when they notice that someone on the top tier isn't using the product that much, one of the most effective retention mechanisms is going to them and saying, hey, this is in your best interest. We noticed that you're paying for this top tier and you're not really using it. Would you like us to downgrade you? Now, why is that so effective? Most people would think, well, that's stupid. Why would you go go to someone paying you $99 a month and tell them you should be paying me $9 a month. Why would you do that? And what they found in the data is that by proactively doing something that was in the user's best interest, yes, they brought the faster revenue down, but then the user stayed longer.
What Every Writer Gets Wrong About Their Audience #writing #creator #writingtips
