Startups For the Rest of Us
Episode 476 | “We Went from Hundreds of Free Trials to a Few Dozen...On Purpose” with Jordan Gal
Dec 24, 2019
Jordan Gal, the founder of CartHook, shares insights on his bold decision to transition from hundreds of free trials to a more elite demo approach. He discusses how strategic pricing and a focus on qualified customers significantly reduced churn rates. Gal reveals the challenges his team faced in refining onboarding processes and managing customer expectations. Ultimately, he highlights the importance of balancing empathy with profit in navigating shifts in market strategy, all while aiming for improved team morale and operational efficiency.
47:58
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Quick takeaways
- The shift from free trials to an application-based process aimed to reduce churn and target more qualified customers for sustainable growth.
- A significant price increase was implemented to align with the software's improved value, emphasizing long-term business health over immediate gains.
Deep dives
Strategic Price Increase and Change in Sales Process
A significant strategy discussed involves a gutsy price increase and a shift in the sales process aimed at reducing churn and targeting more qualified customers. Instead of relying on a high volume of free trials, which previously led to unsustainable churn rates, a decision was made to limit access to trials while also raising prices. This price adjustment was grounded in a desire to align pricing with the value provided, as the software had drastically improved since its inception. The approach focused on attracting fewer but better-qualified merchants, significantly improving customer retention and overall business health.
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