November was a great month as we managed to double the number of paying subscribers. However, the good times stalled in December: we basically lost as many subscribers as we gained, leaving us with a rather flat month and zero growth.
So, why was December worse than the previous month? I think we managed to artificially inflate the numbers by pushing too hard on the marketing front, or perhaps not pushing in the right places. In November we did an email blast to our entire customer base, but by doing this we were marketing to a lot of people that were't interested in a blogging platform (yes, I know this is Marketing 101!). I think the only reason a lot of people signed up for the trial was to just check out the app as it's from us (Realmac), and in reality most people had no intention of sticking around.
The majority of customers tried the service free for 2 weeks, then canceled their accounts before they were billed which gave us a crazy high level of customer churn. In November our churn rate was 37%, whereas in December it jumped to a whopping 57%. Ouch! Thankfully we had a healthy amount of new subscribers who did stick around so our monthly revenue has stayed the same. While I'd like to see growth every month, I’m okay with it being flat for a month… so long as we grow this month! Anyway, on to the numbers:
December 2015 Revenue Report for Typed
- Monthly recurring revenue: $1,531.03 (-2.01%)
- Annual recurring revenue: $18,372.39 (-2.01%)
- Total Paying Subscribers: 131 (-8.39%)
- New Paying Subscribers: 86 (-12.24%)
- Customer Churn: 57.24% (+52.63%)
Going forward I think it'll be more important for us to take a more organic approach to getting new customers onboard. For example, Nik has been writing useful blog related content, and I've been recording tutorial videos. We're both going to continue doing this, and while it's early days I think it's going to pay off in the long run.
On a side note, I was Googling blogging platforms and there's a tonne of sites that do round-ups of all the platforms available. Unfortunately they were all written before Typed was available. So one of my plans is to work to ensure tech and blogging-related sites cover Typed, while also making sure it gets mentioned in as many blogging platform roundups as possible. This is not an overnight fix, but if we do it right, it will help with growth.
Typed Updates in December
Here's a quick run down on what we added to Typed.com in December:
- Theme uploading is now in public beta
- Added two new public themes “Hero” and “Press”
- Added support to set the number of posts per page for a site
- Added autocomplete support for post tags
- Many additions to the Theme SDK!
For a full history you can view the public release notes here.
As I said in December, our next major milestone is to have 1,000 paying subscribers. While December didn't get us any closer to that goal we made great progress on the product, and I'm confident we'll get there before the end of 2016.
I’ll be back in February with another report, but until then, thanks for supporting Typed and happy blogging!
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