Growth HackHow Nomad List increased Revenue by 26%
Nomad list offer a one-time subscription fee of $99 to join their platform. They mostly sell to Digital Nomads who want to know about the places they are going to travel and work from.
Nomad List build their own checkout usign the Stripe SDK. All purchases went through this checkout. So any improvement in checkout conversion rate would directly increase revenu. i.e. a 10% improvement on “someone landed on checkout page” to “someone successfully purchased” would increase revenue by 10%. This would happen instantly because there are no free trials or monthly fees
When Nomad List moved to using Stripe checkout instead of the Stripe SDK their revenue increased 26%
Building checkout is hard. There are a lot of psycological things going on, like customers making buying decisions e.t.c. Trust plays a large role.
These on the payment form also make things difficult:
- Size of input boxes being too small
- Focus zone of inputs being too small (making it hard to touch a input box to input your card)
- Getting credit card autocomplete working
- Collecting all of the required information
- Collecting the right information increases authorization rates. But hte information required varies depending on the country
- Offering convenient payment methods. E.g. different countries have different popular payment mehods. Ideally, want to offer people payment methods that make sense in their country
- Also, payment methods based on device type. Want to offer iphone users Apple PAy, Android users Google Pay e.t.c.
- Avoiding card testers e.t.c. Card testers will hurt your reputation with card netowrks because there will be more disputes. This will lower your authorization rates, meaning there will be more failed payments.
Since Nomad list do one-off payments, they see all of the benefits as a revenue increase.
If they sold subscriptions, e.g. $99 per year, then it’s likely that fewer of the subscrtion payments would fail. This would decrease Nomad List’s Churn, specifically their Dunning Churn.
If Nomad list sold subscriptions wiht a free trial, then I would expect them to get more free trials and a higher trial conversion rate.
When users try to start free trials with credit-card upfront, the initial test charge can fail.A good authorization rate can reduce the number of failures
Similarly, when someone completes a free trial their Credit Card can fail meaning htat they don’t convert. A better authorization rate means that this is less likely to happen, so free trial conversion rate would increase.