MBA2126 How To Make More Revenue With Customer Cancellations

Hey Fidelity, what's it cost to invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs. That's music to my ears. I can only talk.

Investing involves risk, including risk of loss. Zero Account fees apply to retail brokerage accounts only. Sell order assessment fee not included. A limited number of ETFs are subject to a transaction based service fee of $100. See full list of Fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE SIPC.

Ready.

To Save on New Tech? It's time for Dell Tech Day's annual sales event celebrating our customers with fantastic deals and benefits. Perks include Dell Rewards, free shipping, premium Support and more. PCs like the Dell 14 with Intel Core Ultra processors will help you do more faster and with a premium suite of monitors and accessories, you can upgrade your whole setup with amazing savings. Visit Dell.com deals.

Foreign. To the $100 MBA show because your business deserves the best every single day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of Webinar Ninja, an independent software company. I started my co founder back in 2014 and in today's lesson you will learn how to how to make more revenue with customer cancellations. Yep, you heard that right. How to make money when your customers cancel your product or service. This is a strategy that I've been only sharing with some of my closest friends in business. But today I'm sharing it with you. On the podcast. I'm going to show you multiple ways to make money to make revenue when a customer cancels your product. I must warn you though, these are unorthodox. They might sound strange or weird, but they're tried and tested and because they're so original, no one's using them and therefore you'll stand out and convert. So let's get into it. Let's get down to business.

USAA knows dynamic duos can save the day like superheroes and Sidekicks or auto and home insurance. With usaa you can bundle your auto and home and save up to 10%. Tap the banner to learn more and get a'@usaa.com bundle restrictions apply.

So we want to make money when people cancel? How is that even possible? Well, let me show you the tips I'm going to be sharing with you today. Work best with self cancellation, meaning that people go into your product and cancel themselves. That could be a membership to your coaching or Your program, it could be an app, like a SaaS product. It could be anything that you are charging them on a reoccurring basis. Before you actually go ahead and have them cancel their app. We like to put them through a cancel, and this basically is to give them options and to gather information and then lastly make money as they leave. So the first thing we do is that we try to prevent them from leaving in the first place. So we actually ask them a few questions or for them to select why they're leaving. So if they select difficulty of use, we actually suggest they reach out to support or get a free onboarding call. If they choose not using it, we give them another option, which I'll share in a moment. Missing feature. We take note of that too, because you're going to see what we're going to do later on. The point here is that I want to gather information to know why they're canceling, so that way I can improve my product and be able to prevent this from happening in the future. So that's just step number one. Step two is I give them the option to pause. This is something that we implemented in our app, webinar Ninja, recently, this year, actually, and it's an incredible idea because some people love your product, but maybe they're not using it right now, but they've built their profile, they've maybe have some assets, they've uploaded things, they have some safe things in their account. They don't want to delete everything. They don't want to set things up all over again. So we offer a pause plan. Our pause plan is only $4.99, and basically we'll save all their data and they can jump right back into where they were for just five bucks a month. For most of our users, this is a whole lot better than deleting everything. Why? Because the nature of our software is they're creating webinars. They have saved videos, they have slides they've uploaded, they have registration page templates they've created. There's a whole bunch of stuff they've worked on. They don't want to necessarily have to do that all over again. So we actually give them two options. You can either cancel and delete all your data, or you could just pay us five bucks a month and we'll save everything for you. And they understand, because, hey, five bucks is reasonable, especially for the fact that we're saving all their data. And there's a cost on our end to save all that data and the storage, so it prevents a total Cancellation, you still make money off somebody who's not using your product and they're still part of your ecosystem. And you can, you know, encourage them to sign back up to a full plan. Especially when you start releasing new features or new products or new benefits to your actual offering. Our churn got reduced dramatically when we implemented this. I'm talking about like 40% less churn. And of course revenue went up because we're making money with this kind of mini plan. So offer a pause plan. It's a no brainer. Number two, remember I said that you're going to give them some options to ask, hey, why are you canceling? Too expensive, difficulty of use, missing feature, that type of stuff. Well, if they choose too expensive, you can offer kind of like a hidden plan that's sort of like a downgraded plan, a basic plan that maybe you don't offer publicly. It might be just the bare bones of your product or your product with a few things missing. This might be just enough for somebody to hang on and be like, hey, wait a minute, this is actually just what I want. This is a good price, I'll just downgrade before I cancel altogether. This is also known as a downsell. And it actually really works because some people are just on a budget and they want to cut their costs. And let's say for example, your membership is a hundred dollars and then you offer them, hey, we have this other one that's only $39 that they were unaware them. That's like, that's a huge savings. That's probably the cut they needed to do and that's all good. Number three, what if they choose missing features or not a good fit for me or whatever that is. Here's a real ninja move, guys. It's outside the box, but it makes total sense. Somebody's leaving your product because you don't have what they need. You're a bad fit. There's very little you can do to salvage this customer. You can't like drastically change your product overnight. But what you can do is that you can recommend them to maybe another product or service that's similar to yours that might fulfill their needs. Meaning you might want to recommend two or three competitors. Yes, you're going to send them to your competitors. Maybe one that's a little simpler than your product and two that are a little bit more advanced, that have more features or probably what they're looking for. And you can even create a table or maybe a little section showing, hey, this product is simpler than our product. These two products are more advanced and have these features that we don't have. Then you create some buttons saying, click here to check them out or to sign up or some call to action to send them to your competitor. You might be thinking, now, Omar, are you nuts? I'm not going to send traffic to my competitors. Hear me out. The links you're going to be sending them to are your affiliate links. Yep. You're going to sign up for the affiliate programs of those different competitors that do different things to you. We've already established that your customer that's leaving you is not a good fit for your product. There'd be a better fit somewhere else. You might as well capitalize on somebody leaving your door and say, hey, you know what? We don't fit your needs, but these people fit your needs. Go ahead and sign up over here, use your affiliate link and you're going to get commission, reoccurring commission, in most cases, referring them to the competitor. And that's an extra revenue stream for you. Look at how many canceled customers you've had in the last year or two years or in the lifetime of your business. Imagine you could have capitalized on those customers getting reoccurring commission on their next product that they moved on to. This is bold because they're not expecting it. They're like, wow, you're actually helping me out. It's actually leaving them with a good thought in their mind about who you are as a company. And you're getting the benefit of getting referrals. And that referral fee, the only thing that's actually stopping you is just admitting the fact that this customer is probably leaving you and won't come back anyway because you're not a good fit. And remember, we're only showing this option when they actually self select not a good fit or missing features.

If you, your parent or spouse served in the military, you could join our family. Our members saved an average of $70 a month on auto insurance when they switched. Tap the banner or visit usaa.com join today to check your eligibility restrictions apply.

To wrap up today's episode, I want to give you one more tip on making revenue when your customers cancel, and that's repackaging your offer. Let me explain what that looks like. When somebody cancels, you can easily offer them, say, hey, would you like this product that they're canceling for free for 12 months? If so, you may be interested in this program. And this could be another product which is just like a training program, a coaching program, some sort of mastermind, something else that you sell and you bundle a year in the price. So say for example, you have a 12 months coaching program that normally costs $5,000 a year. You could say, I'm going to give you 12 months free of the software. If you sign up for this coaching program, there's a good chance they need help. Maybe they're struggling, maybe that's why they're quitting and canceling. And you've made money by having a new student into your program and you've kept them onto your platform on your software or whatever your product is that they're canceling and you've bought yourself a year for them to be ready and willing to pay for the next year. It's just really re shifting or repackaging the actual product with something else, bundling it with something else. And the reason why they'll say yes is because they may not need the software right now, or maybe they're not using it, but maybe they need guidance to using it better. So what I recommend is whatever that training that you're going to offer and bundle a year for free with, make sure it helps them get the most out of your product so that they don't cancel next year so they get the most out of it and they get the support and accountability. Well, there you have it guys. That wraps up today's lesson. I highly recommend you might want to re listen to today's episode, take some notes and challenge yourself and say, hey, which one of these am I going to implement right away and start making some money during the cancellation process when my customers leave, which one's the easiest for me to implement? Where's the low hanging fruit? The point here is to take action. Thanks so much for listening to the $100 MBA show. If you love what you hear, hit subscribe right now on your favorite podcast app. Also, leave us a rating and review. We'd love to hear what you think about the show. Reread every single review that we get. It helps us stay on our toes and double down on things that you love and work. So go ahead, leave us a review. Thank you for doing that. Before I go, I want to leave you with this. Business is all about giving customers something that they need that solves your pain or problem. That's what business is all about. So if your product is not doing that, then give them something they do need. Whether that's training, whether that's another product, a competitor's product, whether that's just some time with the pause plan. The point here is is that just give them what they need at that moment and charge for it. Maybe you gave them something with your product that they don't need at that moment. It doesn't mean they can't be a customer of yours. Thanks so much for listening, and I'll check you in. Tomorrow's episode Freeride Friday. I'll see you then. Take.

Foreign. Introducing Fidelity Trader Plus. With customizable tools and charts you can access across all your devices, try our most powerful trading platform yet@fidelity.com TraderPlus investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC Member nyse SIPC.