Design Pleasant Cancellation Experience and Improve Retention

IPSY is a Personalized Monthly Makeup & Beauty Sample Subscription service

A UX case study on user offboarding for IPSY iOS app

Breaking up is never easy. How to deal with customers who are leaving? Below is my approach to providing pleasant user offboarding experience while reducing the cancellation rate. This is also a design exercise I completed as part of the interviewing process at IPSY. 
Disclaimer: I am not affiliated with IPSY in any capacity ?.

Step 1: Understand the challenge

Problem

Many IPSY users directly cancel their subscription when they feel the product doesn’t fulfill their needs. They have no alternatives because the current subscription plan is either receiving one beauty bag every month or cancel.

Solution

In order to reduce the cancellation rate and improve retention, my proposals are:

1. Offer subscribers more flexibility on account page level: put subscriptions on hold or switch to an every other month plan (suggested in IPSY design challenge).

2. Listen to why the user is leaving, and then present them meaningful offers/helps to address the reason they have stated.

3. Communicate the consequences (benefits would be lost) and provide clear Cancellation path.

4. Provide bigger ecosystem of support and ask for feedback.

Why providing a great offboarding experience is important

  1. A pleasant user offboarding experience leaves a good impression on users, they may resubscribe in the future.
  2. It could result in positive word-of-mouth referrals, which is part of IPSY’s business model.

The key success metric

Long-term subscriber retention, measured as the beauty bag shipments/subscribers. (suggested by IPSY in this design challenge)

Constraints

Introduce new subscription plan on the Account page and in the cancel flow. (suggested by IPSY in this design challenge)

My assumptions to make this design problem addressable

  1. When users change their subscription, it doesn’t affect their current months model but it applies to the following month bill cycle.
  2. Users can personalize the items in the beauty bag by editing or reviewing it.

Author: Zi Yuan

Collect by: uxfree.com

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