Coconote · B2C · AI lecture note-taker
When people cancel, offer 7 more free days instead of a discount
Saved 25% of cancellers; beat a 30% discount and a 3-month pause
What they did
What happened
- Stage
- scale
In their words
Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote
David BarnardWell, once people do start that free trial and as a hard paywall, keeping them and having them convert is that next big key, what were the unlocks there for helping people convert and any stats around your trial start and trial conversion rates that you want to share?
Brett BaumanI feel like web and e-commerce have had a really big lead when it comes to this stuff, like the real optimizations and the benefits of being outside of Apple's walls. It's more of like the Wild West of what you can do. We wanted to try some cancellation flows there on our website and there's like this standard asking questions about why they're canceling, things like that. And we were able to retain 25% of people from canceling, which we felt like was pretty big.
Brett BaumanAnd to do that, we tried three things. One of them is your standard discount offers. You get 30% off if you stay or something like that. Another one is pausing. So because we have students as our users, they come May or June, they don't want to keep paying over the summer. And so we thought we could try pausing for three months.
Brett BaumanAnd then the last one was trial extensions. And this is one that I haven't seen that much, but basically if you're on a free trial and you go to cancel, then we basically say, "Do you just need more time?" And offer them seven more days. And that was the most successful one by far, and it really keeps people on that auto-renew. And I think it's so hard to get them back onto auto-renew once they leave, but that was a big win for us. And I think there's a way to actually do this on Apple and Google now too, and so I'm going to be exploring that.
David BarnardApple does now have, it's in limited beta right now and you have to ask for it and get approved and everything like that, but it's a retention offers in App Store settings when they're actually outside of your app trying to cancel. You can now show a screen and offer a discount and things like that.
Get tactics like this every Monday
New tactics from the week's founder interviews, each linked to where it was said.
More from this episode
- Launch a basic version fast and charge from day one$100K ARR in 45 days, $1M in 4 months
- Hire creators with 5-10K followers, found via the Gmail in their bio3 of ~30 made a huge difference; main engine to $1M ARR
- Have one hired creator run the brand's main video accountHundreds of millions of views
- Tell creators to show the app as a fix or identity, not a noveltyConverted best, per the founders; no numbers
- Launch a viral 'PDF to brain rot video' side site to funnel users~41M views on one video, but no paying users; shut down
- Aim videos at the parent who pays, not just the studentMany viral Instagram videos used this angle; later scaled back
- Ask customers to describe the app; put their words in the first screenshotFounders call it one of their best moves; no numbers
- Charge students $99/year and push the annual plan~80% chose annual
- Raise the annual price from $99 to $129More users and more revenue at the same time
- Give one free note, then require a free trialCredited with early cash flow; no numbers
- Run paid ads cut by an agency from creators' raw footageBeat boosting viral posts, but never profitable; stopped
- Double onboarding to ~15 screens with more questions and social proof+16% trial starts
- Ask people to log in after the paywall, not on the first screenBiggest onboarding win; removed ~10% drop-off
- Put in ~$10K each and reinvest revenue into creatorsCash-flow positive throughout; no outside funding
- Hire a banker to run a buyout so the founders keep buildingSold to Quizlet; revenue roughly doubled during the process
Tags: web, stripe, trial-extension, save-offer, pause, discount, web-billing