Controlling churn at Pago Nube | 2023
About Nuvemshop and the product I work on
At Nuvemshop, we help entrepreneurs sell online by offering the best platform and solutions. Nuvemshop is the leading e-commerce platform in Latin America. With over 100,000 active stores, it integrates products, payments and shipping with different sales channels, such as Facebook, Instagram, marketplaces and physical stores.
I work at Nuvem Pago, the payment method in the Financial Services area, with a focus on user experience in Argentina (Pago Nube LatAm product).
My role
To plan and execute research, including conducting user interviews and usability testing. Additionally, I was also responsible for designing the solution's interface.
Topics:
- Research
- UI using Figma
- User testing
- Measuring using Amplitude
Problem
Between November 2022 to January 2023, we experienced higher than expected churn volume, with 20% of the merchant base and 16% of monthly GPV (Gross Payment Volume) being affected.
Objective
To address the business needs of merchants who deactivated Pago Nube and to reduce churn rate (target 5% churn GPV).
Research
Desk Research
Through a CSD matrix and Desk research, I raised assumptions that led to the main research hypothesis:
Merchants need more details about their sales and financial movements in their Pago Nube account so they can reconcile their sales.
Evidence 1 - Support Contacts
One clear evidence used to support this hypothesis were the support inquiries.
Through an analysis of tickets in Zendesk, we saw that out of approximately 900 inquiries received during the month of December, 40% were related to questions about balance and transactions.
*Activation is the main reason for consultation in this graph, but we knew it was not a churn reason because they were doubts about how to activate the product (it was not yet available for the whole base and there was a lot of interest).
Evidence 2 - Mercado Pago Benchmark
The main competitor in the Argentine market is Mercado Pago, which is the segment leader. Analyzing the balance and statement experience, Mercado Pago offers in detail all information on inflows, outflows, fees, and the date in which the sales money will be available for withdrawal.
We were aware of this behavior, but in the first version of the product we launched without a screen detailing the inflows and outflows, to cut scope.
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Research Planning
Research questions
- What was the motivation to activate Pago Nube?
- What was the user experience like with Pago Nube?
- Which payment method did they use now and why?
Remembering the hypothesis
Merchants need more details about their sales and financial movements in Pago Nube account so that they can reconcile their sales.
Users
7 merchants who have a sales conversion rate of over 90% and have sold more than once.
Research Results
#1 Lack of transaction details as the most frequent cause of churn
Merchants need transaction details to track store sales and require data such as charged fee values, taxes, installment interest, and final sale value.
Additionally, a frequent and harmful consequence of the absence of transaction details is the inability to recover a rejected sale, as the reason for refusal is not shown.
💡 An important point identified in this research is that Argentina has a very high number of taxes. Additionally, the country is currently experiencing an inflation crisis, which further complicates business management. Due to these factors, having details of tax withholding, fees, and other charges is non-negotiable for our user, given the currency fluctuations and high number of taxes.
Other churn reasons mapped
#2 As a second reason for churn, we saw that the absence of the option to offer installment payments with Plan Ahora
Mentioned by 2 merchants as the main reason for churn. It's important to mention that these merchants also complained about the lack of data about sales (churn reason #1).
Plan Ahora is a financing plan from the Argentine government that offers lower rates so that merchants can offer interest-free credit card installment payments to customers.
Design
As a first version of the solution, we created the transaction details screen and the possibility of exporting a list of financial movements.
We need both solutions because the details screen is for the merchant and their team to quickly and easily check sales data, including on their mobile phones.
The exportable financial movements are necessary for declaring the (many) taxes that are levied in Argentina, as previously explained. This file is sent to the accountant every month for the mandatory monthly tax declaration for merchants in Argentina. The absence of this file was one of the main pains that caused the churn.
Transaction details
UI Exportable Financial movements
In the first version of the file, it was possible to filter by date and receive the .csv file by email.
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Both solutions went through usability tests with merchants, who had defined tasks and could navigate through the Figma prototype while being asked specific questions.
Results
After the release of the first version of the solution, we saw a decrease in merchant churn from 21% in January to 14% in February. Similarly, we had a decrease in GPV churn from 17% in January to 9% in February.
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Our main evidence, the contacts in support, have also decreased. From 40% share of contacts in December to 2% in March.
Next steps
We know that the next steps need to be adding to the transaction details screen the reason why a payment was rejected, so that merchants know when a decline is not due to fraud and can try to recover the sale through another payment method.
Thank you!
