Business License Research
LegalZoom is an established technology company that provides tech enabled legal and small business services to consumers and small businesses. They had recently launched a business license product to help small businesses understand what licenses they needed to obtain in order to stay compliant.
The Challenge
Initial purchases of the business license product were promising, however after looking at the data, it was clear that a significant amount of customers were not engaging with the product after purchasing. Because these customers are highly likely to churn or issue chargebacks, I was asked to help the product team understand why customers were purchasing but ultimately not engaging.
My product manager and I began by studying the data we had available to us in amplitude. The most largest drop-off was occurring in a predictable spot - the point at which we re-engage with users after we have researched what licenses they are required to obtain.
The second largest drop-off occurred at the top of the funnel, where users were viewing the initial question, and immediately leaving the questionnaire.
To better understand this data, we ran a research study with 14 customers, the majority of which had dropped off at one of the two points highlighted earlier.
This research showed us that customers didn't fully understand what business licenses/permits are, and because of that had no urgency around getting them. It was clear that any solutions that we pursued would need to educate our customers, while also reminding them of why business licenses are important.
I decided to focus in specifically on the email's we send customers about their business license purchase, as it was an area where we were already talking directly to them and it was an easy area to test and make changes. The emails that we were sending were not adequately setting timelines and expectations for our customers. Additionally, they were wordy with multiple unclear CTAs.
The updated emails included education (both about licenses and the consequences for not having licenses) as well as clear expectations on timelines and next steps.
The emails were able to be implemented within a week, and we saw an increase in the total conversion of the business license product by 10% after the new emails were deployed, with the majority of improvements occurring at the two problem areas that were originally identified.
Longer term improvements look to reduce the amount of time the license research takes, as well as to re-order the questionnaire and identify areas where it can be shortened or questions can be removed outright.