With a focus on sourcing the healthiest and most sustainable ingredients, Lifeboost elevates your favorite daily ritual – coffee. Easy on your stomach, eco-friendly, 3rd party tested, and certified organic, it’s no wonder they’re a favorite amongst coffee fanatics.
When Lifeboost first migrated to Stay AI, they witnessed a 120% growth in add-on revenue in their first 90 days on the platform. Since then, Lifeboost has continued to innovate, iterate, and expand their subscription program with the help of Stay AI’s churn-busting technology and our predictive churn analysis forecasting, powered by our proprietary machine-learning software.
Challenges
When Lifeboost first migrated to Stay AI from their previous provider, their goal was to scale their subscription program while also reducing churn.
You are 40% more likely to save an existing subscriber than to acquire a new one. This is one of the reasons that Lifeboost focused efforts on optimizing retention rates and prioritizing existing customers rather than battling rising CAC across major acquisition channels.
“For us understanding why behind customer churn was a priority and was the reason we switched from our last subscription provider.” – Michelle Hendren, Director of Operations
The Solution: ExperienceEngine
Stay AI’s ExperienceEngine is an all-in-one churn-busting tool that allows merchants to split-test different products as upsells or the same product with different discount amounts to optimize their program for the highest-converting offer(s). Stay’s machine learning capabilities also allow for smart segmentation of subscriber cohorts based on behavior and predictive churn risk to deploy a variety of targeted offers, free gift-with-purchase(s), and more.
Using ExperienceEngine, Lifeboost reduced overall subscriber churn by 35%.
Our Strategy
Reduced Churn with ExperienceEngine: Alongside their usual subscription offering, Lifeboost wanted to test a unique premium subscription model known as “Lifeboost First Class” that leverages free gifts and an occasional free bag of coffee throughout a subscriber’s order lifecycle in hopes of boosting subscriber retention and satisfaction while still maintaining a healthy margin per order. To narrow down the right timing for each gift, and which gifts resulted in the lowest cohort churn, Lifeboost leveraged the robust capabilities and smart split-testing gift-with-purchase features of ExperienceEngine.
The products, gifts, and limited-time offers included in this model have been tested and optimized over several months with the help of Stay’s dedicated CSM team and their strategy recommendations that have allowed Lifeboost to build out a truly unique and customer-centric experience that has reduced churn by 35%.
“What we do with ExperienceEngine is give somebody a free item every month and [this] has proven to reduce our turn rate for the first three months at least by 35 percent.” – Michelle Hendren, Director of Operations
Stay AI’s Signature Upsell & Cross-Sells: Lifeboost also regularly updates their available flavors based on seasonality. These seasonal offerings are perfect for Stay’s upsell and add-on functionalities, allowing subscribers to add one-time upsells to their orders – and usually at an exclusive subscriber price. By running promotional campaigns across cohorts to cross-sell subscribers into ancillary product categories or upsell one-off items to increase AOV, Lifeboost has built out a robust subscriber experience that optimizes toward a greater LTV.
These promotional campaigns and upsell opportunities can be split-tested and optimized for the highest conversion rate across subscriber cohorts using our ExperienceEngine.
“I’ve been kind of dabbling in the ExperienceEngine and doing some of our flavors and we only do one-time offers for, just to try to get them to upsell inside of there and really push the higher AOV.” – Michelle Hendren, Director of Operations
Advanced Churn Forecasting & Reporting: The Lifeboost team also leverages Stay’s robust churn analytics forecasting and reporting to pull data from our customer cohort analysis and performance dashboards to inform their strategy around subscriber retention and overall recurring revenue growth. Using ExperienceEngine, Lifeboost is able to pull powerful reporting behind every experience so you can see cohort LTV, take rate, and retention rate.