Dropbox, a well-known company for its cloud-based document storage and management services, faced significant changes during the pre-pandemic era relating to contract churn for its business clients.
Dropbox encountered the issue of high churn rates in business subscriptions. Churn, in this context, refers to the loss of customers or clients abandoning the toolset after their contracts expired. This problem was costly for both Dropbox and its clients, as clients had to seek alternative tools, and Dropbox lost potential sales opportunities.
In 2017, Dropbox identified a need for virtual training for end-users at the business level to reduce churn. The training was necessary to familiarize users with Dropbox's features and capabilities, which in turn enhanced business operations at their clients and promoted software adoption and reduced the likelihood of clients switching to other services.
A Request for Proposal (RFP) was issued for the virtual training program. The initial responses to the RFP were over the budget, prompting a reassessment of the requirements. Charles Dye, representing the service provider, suggested a revised approach focusing on the core business objectives, leading to a reissued RFP. Eventually, their proposal was selected due to its alignment with Dropbox's needs and budget considerations.
The training program focused on role-based training for business users, administrators, and other relevant roles in multiple languages, adapting to the international scope of Dropbox's operations. The program also included training on new features before their launch, preparing users for immediate adoption.
The training program significantly reduced churn rates.
Increased user adoption of Dropbox features, notably a 30% increase in the use of advanced market-distinguishing capabilities that curtailed churn.
Expanded the training audience to include regular individual users, further enhancing the software's adoption.
The program helped maintain a stable and ongoing relationship between Dropbox and the service provider, now training in five languages globally.
Kristen Gardner, initially the Director of UX and later an EVP at Dropbox, played a crucial role in the project.
The training initiative successfully increased Dropbox's contract renewals and user adoption.
It positioned Dropbox as a more appealing option compared to competitors due to the widespread knowledge of its features among users.
The case serves as a testimony to effective collaboration and problem-solving in adapting to a remote work environment.
Consulting and solution development.
Instructional delivery and design.
Cultural change management, particularly in adapting to virtual learning environments.
This case study exemplifies how targeted virtual training can significantly impact software adoption and customer retention, particularly in a remote work context. Dropbox's strategic approach to training, facilitated by effective collaboration with the service provider, not only reduced churn but also enhanced the overall user experience and proficiency with the software.