Transcription
I have a SAS company. It's an e-commerce fulfillment platform that specializes in drop shipping fulfillment.
Cool.
We have super super high churn, 33%.
Because a month. A month. Yeah. Because 99% of our traffic is a new business that they're trying to start an e-commerce business.
We've done surveying, market research, like I'm going to make your day, but keep going.
Okay. The the their issue is they need to find which products they want to sell and drive profitable traffic. We just can't figure out how to operationalize that.
Yeah. So you have something called structural churn. Um which is something to not lose sleep over.
Okay. Thank you.
Like Shopify has more churn than you do.
Yeah.
So it's just it's the nature of getting into the VSSMBB space. So VSNB is very small business center. SMB and mid-market, then you go up to enterprise. Um but you're just you're in the VSNB space, which is almost the same as consumer.
That's just the game.
Yeah. But the good news is there's a gazillion of them. And so that's the trade.
It's an infinite market almost. Yeah.
Yeah. Yeah. And so like if you think about what Shopify's business model is, it's like I mean it's in your space, right? Is that they have a very small fee for people to start and then they get their upside from payments for the people who self self- select as the you know highest and best users. And so they make money on people who make no money and then once those people make a lot of money, they make more money with them. And so it's kind of like a dual-sided uh monetization structure. And so that might be something that I would explore.
Yeah, we're looking into payments. I'm trying to figure like I thought that was the constraint my business but churn.
Yeah.
Um it's I mean 3% a month for VSMBBS is not bad.
33%.
Oh 33.
Yeah.
Yeah. That's that's worse than three.
Yeah.
Um super high.
That's 11 times worse than three. Um I was like, "Dude, you're doing fine. [laughter]
I love I was like, "I'm make your day, dude. I'd love three. Doing great."
Um Yeah. Got it. Yeah. So I I'll bet you can get that probably closer down to 10.
Yeah. Um I would look at what Shopify I think they're like at 10 but like it's it's high.
Yeah.
Um and so everything so my recommendation because obviously we have school and so I'm I'm in the VSSMBB world. Um is you want to think about product through elimination rather than addition. So it's how can I eliminate things from the product that people aren't using? What are the thing like the number one reason people cancel is overwhelm.
They get distracted.
Overwhelm. It's too many things they don't know what to do. And so it's really trying to pull as this goes for service too by the way. um trying to pull as many things out and like you can introduce things later that they don't necessarily need yet. So it's really just thinking what is the one thing I need them to do right now and then until they do that I'm not going to show them something else and then once they have done that I will show them the next thing to do. It's just trying to keep the as little friction as humanly possible and that like the hundred golden BB's. It's no there's no silver bullet. It's just looking at right now like you probably have a data guy hopefully on the team that can run like a regression analysis on on the cohorts.
Yeah.
And so if you do you know what your activation points are?
Yeah, we know the golden path.
Okay. Yes. Well then just I mean literally all resources go towards that thing. Like if that is the constraint of the business then I don't care about getting new members. I don't I mean like I care about them in so far as we need to test the cohort out to make sure that it's working. But I'm not doing any growth initiatives. I'm not doing any new features. Everything that we're focused on is how do we get more people to that activation point and I don't care about anything else. That's it. And so if the activation point is right, then churn will go down. If the activation point that you have is wrong, then you have to find what it really is.
Yeah.
So if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. And so my team spends two days with you to identify the thing that's holding your business back. And so if that sounds interesting, click book a call. And if you're a fit, we'd love to potentially see you out here in