How SumoJerky Boosted Retention from 50% to 87% with a Personal Touch
Ryan Luedecke, the CEO of SumoJerky, a subscription service delivering premium beef jerky to customers, faced a significant challenge:
For every trial subscription, Ryan was losing $3.95 of his own money, and only 50% of trial participants were converting into paying customers. The situation was unsustainable and required immediate action to turn things around.
Instead of scaling back or automating further, Ryan implemented a bold and controversial technique that transformed his business. By introducing a personalized, manual approach, he increased his retention rate from 50% to 87% and built meaningful customer connections in the process.
The Technique That Made the Difference:
Rather than relying on automated processes, Ryan added several manual steps to the trial subscription journey, creating a tailored and humanized experience. Here’s how he did it:
- Requesting Confirmation Before the Free Trial:
- Instead of automatically signing up subscribers for a free trial, Ryan required them to actively confirm their interest.
- Subscribers were prompted to say, “YES, I want it” via email, making them more intentional about their decision.
- Personalized Follow-Up:
- When Ryan received their email confirmation, he personally replied with a series of questions, including:
- Dietary restrictions
- Flavor preferences
- Motivation for signing up
- This step not only engaged the subscriber but also allowed Ryan to gather insights into their needs and expectations.
- When Ryan received their email confirmation, he personally replied with a series of questions, including:
- Tailored Offers:
- Based on the subscriber’s responses, Ryan provided:
- A sign-up link tailored to their preferences.
- A coupon for a free bag of beef jerky as a thank-you gesture.
- Based on the subscriber’s responses, Ryan provided:
- Customized Trial Orders:
- Using the information collected, Ryan curated the subscriber’s trial order to perfectly match their taste preferences.
- After the order was sent, he followed up with a personal thank-you email, solidifying the relationship.
The Results:
This personalized approach yielded remarkable results:
- Retention Rate: Increased from 50% to 87%, meaning far more trial participants became paying customers.
- Customer Relationships: Ryan’s manual process fostered authentic connections with his subscribers, turning a transactional experience into a personal one.
- Valuable Insights: By engaging directly with customers, Ryan gained a deeper understanding of why people signed up for the service, which helped refine his overall strategy.
Key Takeaways:
Ryan’s success with SumoJerky highlights the power of human connection in a world dominated by automation. By taking the time to personalize the customer journey, he not only improved retention rates but also built trust and loyalty among his subscribers.
This approach may not scale easily, but it proves that sometimes, going the extra mile for customers is worth the effort. For businesses facing retention challenges, adding a human touch can be a game-changing strategy.
Source: Sumo.com