Our Month 12 retention rate is 15%, the retention curve flattens in 7 months, however remaining base is low, which increases pressure on acquisition.
As discussed before, our onboarding and engagement efforts will solve part of this problem, but we need a focussed strategy to prevent churn of ‘at risk’ users. We will only focus on this problem here.
Our research suggests that tech-glitches, poor customer support and lack of transparency on fees charged are a few top reasons driving voluntary churn.
Efforts in customer support and transparency on fees, launching broker reconciliation feature and discount campaigns should lead to 1.5% improvement in retention.
“ I stopped investing in smallcase due to glitches in the app” ” I found the subscription fee to be high, I don’t know if the return will be better than fees ” ” I don’t know how smallcase charges for their service, hence I don’t trust it anymore“
Rank | Churn Reason | Voluntary Churn | Involuntary Churn |
---|---|---|---|
1 | Login or Investment process failure due to tech glitches (including App crashes due to bugs ) | ✅ | |
2 | Poor support or long time is taken for resolution | ✅ | |
3 | Considers fees too high or does not want to pay | ✅ | |
4 | Lack of transparency on smallcase fees/charges | ✅ | |
5 | Missing reconciliation with broker account | ✅ | |
6 | Invests directly into selected stocks via a broker | ✅ | |
7 | Exited the smallcase after making profits | ✅ | |
8 | Don’t have enough amount to invest | ✅ | |
9 | Investor death | ✅ |
[ Open toggle for user negative actions ]