Product-Led Expansion to Reduce Churn Risk
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The Problem
Customers on single products churn at 2-3x rate of multi-product customers. They have weaker lock-in and lower switching costs.
The Solution
Drive expansion into additional products through in-app prompts, usage-triggered offers, and bundling incentives.
Implementation Steps
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1
Identify complementary products each customer should use based on their role/industry
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2
Create in-app prompts when customer takes actions adjacent products solve (e.g., export data = suggest reporting tool)
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3
Offer free trials of complementary products with 1-click activation
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4
Provide bundle discounts for adding 2nd or 3rd product (20% off combined price)
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5
Track expansion revenue and measure churn reduction for multi-product customers
Expected Outcome
Increase multi-product adoption by 30%, reduce churn by 40% for expanded customers
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