Rescuing a High-Traffic, Low-Conversion E-Commerce SaaS
Company: StoreBoost (E-commerce Optimization Tool)
TTM Metrics:
- Revenue: $1.5MProfit: $225k (15% Net Margin)
- Blended CAC: $300
- LTV: $1,200
- LTV:CAC: 4:1
- Website Traffic: 500k visitors/year
- Free Trial Conversion Rate: 3%
- Ad CTR: 2.5%
- Trial-to-Paid Conversion: 4%
Current Scenario
Pricing Tiers & Features:
1. Starter ($49/month):
- Basic sales analytics
- 1 store integration
- 5 A/B tests/month
2. Pro ($99/month):
- Advanced analytics (cart abandonment tracking)
- Unlimited A/B tests
- 5 store integrations
Current Scenario
Ad Strategy:
- Google Ads targeted “e-commerce tools” with vague CTAs like “Boost Your Sales.”
- Landing page headline: “Optimize Your Store with AI” (no proof of ROI).
Customer Feedback:
- “The trial felt overwhelming – I didn’t know where to start.”
- “Why upgrade to Pro? Starter seems sufficient.”
Diagnostic Process
1. Funnel Leakage:
- Hole 1: 500k visitors/year → 10k trials (2% conversion) → 400 paid users (4% trial-to-paid).
- Hole 2: 70% of trial users never ran an A/B test.
2. Session Recordings:
- Users abandoned trials after seeing a blank dashboard with 20+ buttons.
3. Competitor Audit:
- Tools like Optimizely offered guided “first experiment” wizards.
Key Insight:
StoreBoost’s trial was a feature dump, not a guided path to quick wins.
Problems in Detail
1. Ad-to-Trial Mismatch:
- Ads promised “AI optimization” but dumped users into a complex UI.
2. No Value Demonstration:
- Starter plan allowed 5 A/B tests, but users didn’t know what to test
Pricing Page Confusion:
- Listed features (e.g., “unlimited tests”) without tying them to outcomes (e.g., “Increase AOV by 15%”).
Command Growth Solutions
1. “7-Day Revenue Jump” Guided Trial:
- Day 1: “Test Checkout Button Color (We Suggest Red → 12% Higher Clicks).”
- Day 3: “Run a ‘Free Shipping’ Banner Test (Avg. 18% Cart Completion Boost).”
- Day 7: “Upgrade to Pro to Auto-Implement Winning Tests.”
- Implementation: Built with UserGuiding ($299/month)
2. Tiered Pricing with Outcome-Based Messaging:
- Starter (49): “Run5Tests/Month→Avg.49): “Run5Tests/Month→Avg.1.2k Revenue Lift.”
- Pro (199): Unlimited Tests + Auto−Pilot Mode→Avg.199):“UnlimitedTests+Auto−PilotMode→Avg.5k/Month Revenue Lift.”
2. Ad Retargeting Campaign:
- Targeted cart abandoners with: “We Recovered $14k for [Similar Store] – Can We Help You?”
Implementation Steps
1. Week 1-2:
- Redesign trial flow to force users into the “7-Day Challenge.”
- Hire a copywriter to update pricing page with ROI stats.
2. Week 3-4:
- Launch Google Ads with specific CTAs: “Test One Button, Boost Sales 12% → Start Free.”
- Retarget inactive trials with: “Your Day 1 Test Awaits – 50% Off if You Finish.”
3. Week 5-6:
- Add a dashboard progress bar: “Complete 3 Tests to Unlock Pro Discount.”
Results (6 Months Later)
- Trial Signup Rate: 8% (+300%)
- Trial-to-Paid Conversion: 15% (+275%)
- Pro Tier Adoption: 40% of paid users
- Revenue: $3M (+100%)
- LTV: $2,800 (+133%)