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In this project, the objective was to boost subscription revenue and minimize customer churn for a supplement ecommerce Shopify store. The scope of work involved several tasks to achieve this goal:
Customer Segmentation: The customer list was divided into three categories: one-time purchasers, occasional purchasers, and subscribers, to better understand their behavior and preferences.
Dashboard Creation: An interactive dashboard was developed, showcasing key metrics such as total revenue, subscription revenue, monthly churn rate, subscriber count, and revenue breakdown by product for one-time and subscription purchases.
Product Subscription Analysis: The analysis identified products with the highest and lowest subscription rates, as well as those generating the highest and lowest lifetime revenue. This information helped uncover patterns and trends that could improve subscription rates for other products.
Churn Reason Analysis: Customers' reasons for canceling their subscriptions were analyzed. Common issues leading to churn were identified, such as perceived high prices or having excess product. These insights provided an opportunity to address these concerns and reduce churn.
Additional Insights: The analysis provided the freedom to add supplementary insights and interpretations to further improve subscription revenue and reduce churn. These additional insights tailored the approach and recommendations to the specific needs of the ecommerce store.
The project utilized various statistical analysis tools such as Python, R, SQL, or Excel, and the dashboard was created using Excel or Google Data Studio. A detailed report of findings and insights was prepared, along with a clear and concise presentation to the team.
By implementing the recommended actions derived from the insights, such as adjusting product pricing, addressing customer concerns, and refining subscription strategies, the supplement ecommerce store can effectively enhance subscription revenue and reduce customer churn.
My insights
Insights for Enhancing Subscription Revenue and Reducing Churn in a Supplement Ecommerce Store
- Total revenue of the store: $704,000 USD
- Total revenue from subscriptions: $294,000 USD
- Monthly churn rate: Ranging from 0.00% to 0.05%, with the lowest rate in January 2020 and the highest rate in April 2022.
- Active subscriber count: 597
Product Subscription Analysis:
- Product with the highest subscription rate: "Vanilla Bean coconut milk kefir-Combo Off 10.00% Off Auto renew" with a subscription rate of 8.54%.
- Product with the lowest subscription rate: "Ultimate gut combo 10% off auto renew" with a subscription rate of 0.00%.
- Product with the highest lifetime revenue: "Combat candida 10% off auto renew" with $20,186 USD revenue.
- Product with the lowest lifetime revenue: "Hibiscus coconut milk kefir auto renew" with $14.84 USD revenue.
Further analysis revealed that the "Ultimate gut combo 10% off auto renew" product was perceived as "too expensive" by many customers who canceled their subscriptions. Adjusting the price of this product may help reduce churn.
Churn Reason Analysis:
- "This is too expensive" was the most common reason given by 1,055 customers for canceling their subscriptions.
- 541 customers cited "other reasons" for cancellation.
- 345 customers stated "I already have more than I need" as their reason for cancellation.
To reduce churn, it is recommended to adjust product pricing and consider providing more detailed options for the "other reasons" category to gain a better understanding of customer concerns and preferences.
These insights provide valuable information for enhancing subscription revenue and reducing churn in the supplement ecommerce Shopify store. By addressing pricing concerns, analyzing customer feedback, and focusing on customer preferences, the store can increase subscriber retention and overall revenue.