Client Case Studies
The Success of RevGuard's Clients


Online Merchant Gains a 588% Increase in Revenue Per Trial with RevGuard

Challenge

An online merchant wanted to find a way to generate revenue from customers who cancel during a trial promotion they were offering.

Hypothesis

The online merchant wanted to increase revenue on trial promotion customers who had decided to cancel during the trial promotion. They chose to use RevGuard’s system to split test save sale tactics and different price points for cancelling trial customers.

Test

Before using RevGuard, the save sale tactics used by the online merchant only targeted discounted recurring charges and aimed to keep a customer on recurring monthly billing for 25–75% off. On average, this process generated only $1.72 per trial order. RevGuard worked with the online merchant to take a different approach. They began to test different offers to present to customers to see which options had the best performance.

Results

The testing results showed that offering a one time charge instead of a discounted recurring rate to a cancelling customer had the largest impact on increasing revenue. Once the optimal one time sale amount was tested and determined, an average of 35% of customers converted under this save sale tactic. On average, this process generated $13.55 in revenue per trial order for those who cancelled during the trial promotion. RevGuard’s solution increased the expected revenue per trial by $11.83, a 588% increase!

Takeaways

Using RevGuard’s patent pending platform, companies can see increases in customer lifetime value (CLV) of up to 100% or more. Many software applications exist to study and estimate CLV, but RevGuard is the only software suite that performs split tests to scientifically and effectively maximize CLV and automatically execute the customer transaction.