Retention through clarity : Re-articulating the membership benefits in the downgrade journey
Duration
2 Weeks
Industry
Fintech (Savings and Credit Building)
Resources/Tools
3 Weeks
Role
Product Designer
User Research, Interaction, Visual design, Prototyping & Testing
Background
Loqbox is a UK-based fintech company specializing in helping individuals build credit and save money. Through its unique approach, Loqbox allows users to save money in a way that also builds their credit score, empowering them to access better financial products in the future.
Loqbox offers two membership options: Full Membership and Lite Membership. Full members enjoy a wider range of benefits, including faster credit score growth and enhanced customer support. Learn more about Loqbox here
Overview
Challenge
Members in the process of downgrading their membership reported limited understanding of the benefits they received under the full membership plan. Data revealed a consistent trend: users frequently downgraded due to either lack of clarity on membership benefits or unawareness that they were subscribed to a full membership. This created a need to address knowledge gaps in the journey, with the potential to reduce downgrades and ultimately improve customer satisfaction.
Hypothesis
If members clearly understand the comparative benefits of Full vs. Lite membership at the point of downgrade, then they will be more likely to retain their full membership. Hypothesized that by including a screen comparing these memberships directly, we could improve the retention rate of full members and reinforce the value of membership fees.
Approach
Proposed solution
To address this challenge, I designed an additional screen within the downgrade flow that showcased three key benefits of full membership:
Go Further: Full members grow their credit score 50% more than lite members.
Get There Sooner: Full members are 30% more likely to successfully access new credit through Loqbox.
Arrive Happier: Full members are more than twice as satisfied with their savings journey through Loqbox.
These benefits were crafted to deliver both practical and emotional value, ensuring users understood not only the functional advantages but also the increased satisfaction associated with full membership.
Tools used
Figma: For screen design and prototype iterations.
Miro: To document research insights and share design rationale with stakeholders.
Supporting research
Key Insights from Downgrade Research
Research identified two main reasons behind downgrades:
Benefit Clarity: Many users were unclear about the specific benefits associated with full membership.
Membership Awareness: Some members didn’t realize they had full membership and downgraded without understanding what they were giving up.
These insights highlighted the need for a clear and persuasive presentation of membership benefits to encourage users to reconsider downgrading.
Experiment Design
Implementation
Designed a streamlined comparison screen to maximize clarity with minimal friction in the downgrade flow.
A/B Testing Setup
We conducted an A/B test between two groups:
Control Group: Experienced the original downgrade journey. (below)
Variant Group: Saw the new benefits comparison screen before completing the downgrade process. (below)
Timeline and Key Details
Go-Live Date: April 4, 2024
End Date: April 18, 2024
Total Duration: 14 Days
Traffic: 100% of users in the downgrade journey participated (50% to the Control & 50% to the Variant)
Journey: Downgrade journey
Impact & Results
The MX124 experiment yielded significant improvements in user retention and engagement:
Downgrade Rate: Dropped from 90.31% in the control group to 72.51% in the variant group, confirming the screen’s effectiveness in retaining users.
Money Back Guarantee (MBG) Rate: Decreased from 63.8% in the control group to 34.6% in the variant group. This indicated that most users in the variant group chose to keep their full membership after viewing the new screen.
Revenue Impact
Baseline Weekly Revenue (Before MX124):
Initial Full Members: 194,564
Weekly Revenue from Initial Full Members: 194,564×2.5=£486,410
Increase in Weekly Revenue Due to MX124:
Revenue Increase: £1,460
Percentage Increase: (1,460/486,410)×100≈0.3%
The experiment contributed an extra £1,460 per week to revenue, marking a 0.3% increase in weekly revenue.Control Group: Experienced the original downgrade journey.
Conclusion
The MX124 experiment was a success! It effectively lowered the downgrade rate and made users happier with their experience. By showcasing the benefits of full membership, we not only reduced the number of users downgrading but also added an extra £1,460 to our weekly revenue, representing a 0.3% increase.
This case study emphasizes the importance of clearly communicating value to our users. Small changes can lead to significant outcomes, showing that thoughtful design choices can greatly benefit the business.
Given the experiment’s success, the new screen was permanently integrated into the downgrade journey, demonstrating the value of a clear, data-driven presentation of membership benefits. This low-cost solution proved highly effective in reducing downgrades and enhancing user retention.