Dormant Digital Profiles: Understanding the Dangers and Solutions for Inactive Accounts

What Are Zombie Users?

Zombie users are paying subscribers who no longer use your product. They inflate your active user count but behave like churned customers—costing you revenue, trust, and long-term retention.

Why do they matter?

  • They skew your metrics (e.g., falsely high MRR).
  • They increase refund requests (if they realize they’ve been paying for nothing).
  • They hurt brand perception (“Why am I still being charged?”).

How to Identify Zombie Users

Step 1: Define Your Engagement Metric

What counts as “active”? Examples:

  • Mailchimp → Sending a newsletter
  • Jasper → Creating a draft
  • Slack → Sending a message
  • Mixpanel → Creating a board

Step 2: Filter & Segment Users

Separate monthly vs. annual subscribers, then sort by activity:

User TypeLast ActiveSubscription StatusRisk Level
Healthy≤30 days agoPayingLow
At-Risk31-60 days agoPayingMedium
Zombie>60 days agoPayingHigh

Pro Tip: Use a formula to calculate:

% Zombies = (Zombie Users / Total Paying Users) × 100  

How to Handle Zombie Users

Option 1: The Slack Model (Best Practice)

Slack stops billing inactive users after 30 days and issues credits instead of refunds.

Why It Works:
Reduces friction for new signups (“I won’t get charged if I forget to cancel”).
Builds trust (no nasty surprises on bank statements).
Encourages reactivation (credits incentivize returning).

Trade-Off:

  • Cash flow impact (you lose short-term revenue).
  • Only viable if your unit economics allow it.

Option 2: Win-Back Campaigns

Target at-risk users (31-60 days inactive) with:

  • Personalized emails (“We miss you! Here’s what’s new.”).
  • Discounts or free unlocks (e.g., “Your pro features are paused—reactivate now for 20% off”).

Option 3: The Sendbird Model (Worst Practice)

Forced annual contracts, no refunds, no flexibility.

Why It Fails:
Angers customers (paying for unused services).
Kills word-of-mouth (“Avoid this company!”).
Leads to churn (no loyalty after contract ends).


Key Takeaways

  1. Track Zombies Religiously – Use engagement metrics to filter inactive payers.
  2. Be Proactive – Don’t wait for refund requests; pause billing or win them back.
  3. Prioritize Trust Over Short-Term Revenue – Slack’s model pays off in retention and brand love.
  4. Avoid Sendbird’s Mistake – Inflexibility burns bridges.

Final Thought

“In a world of Sendbirds, be a Slack.”


TL;DR:

  • Zombie users = paying but inactive.
  • Identify them with engagement metrics.
  • Best fix: Stop billing them (like Slack).
  • Worst fix: Ignore them (like Sendbird).
Published
Categorized as Case Study