As you may of heard in a previous episode, we have recently discontinued one of our services here at Array Digital. In episode 173 of Journey to $100 Million, listen in to Kevin as he shares with you the outcome of discontinuing this service. We had 30 clients that had previously used this, and from these 30 clients, the total revenue per month was $891 combined. Unfortunately, we had to reach out to each client and let them know that we were discontinuing this service. We let them know there were a few options for them, as well. They could either upgrade to a different service, or we could refer them to a company that could help them out.
Some of these clients were upset and some were worried, however this led us to an opportunity where we could upsell and give them better services. As a result, we transitioned from having 30 clients using this service to 3 clients in this category. Not only that, but we went from $891 a month from 30 clients, to $5,200 a month from 3 clients. That is a 480% increase! Plus, instead of having 30 clients for this service, which lead to a lot of administrative work, headaches, and possible issues that may arise – we now only have 3 clients for this service!
Discontinuing this service was huge for us, and we are really excited about it. We feel bad about the clients we had to let go, but we did the best we could to help them out and get them transitioned. It is important to take a look at your business and evaluate the services you have, and see which ones are on the low end that are not worth your time, as well as not making you any money. If that is the case, see if there is an opportunity to reach out to them, and possibly upsell. Of course, in our case, we’re discontinuing a service that forced us into this situation. But, it ended up in our favor with a 480% increase!
Overall, we see that although discontinuing this service may have negatively impacted some of our clients, we saw an opportunity for growth, which ultimately benefited our company by bringing in a significant increase in revenue. Sometimes the tough decisions can be the most favorable for your company. We are excited about this change, so stay tuned!