Trupanion Inc (NASDAQ:TRUP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 04:30 pm ET
[Operator Instructions] Our first question comes from the line of Shweta Khajuria with RBC Capital Markets. Please proceed with your question.
Okay, thank you. Two questions, please. First, on retention rates. What gives you confidence? I mean, at the shareholder event, you had pointed out the growth in retention in May. And it would be great to hear your thoughts on what gives you most confidence in the sustainability of this retention rate. And the second question is, what any trends in particular that you can call out from July?
Thanks, Shweta. Well, you're right that we first started to see an increase in our retention rate since we spoke about it at our shareholder meeting in June. The main areas that gives us confidence that at least we have a road map, we'll still have to execute. In the beginning of Q2, knowing that there was a lot of uncertainty with COVID and looking at the end of March, we went back to the team and said, this is a time to really focus on our existing members. We don't know what the opportunities is going to be like outside of our control, but let's really focus on taking care of the customer. And we did that by paying our invoices faster than ever, answering the phones quicker. And the team really rallied, and I can't say enough about what the team did. What we saw on the backside of that was record level NPS scores, record level retention, and pretty much across the board on every way that we measure it.
We saw improvements in our retention rates in April and May and June, and we have seen also improvements in July to date. So we think we have the formula. It's not overly complicated. When you partner with veterinarian hospitals, when you have the ability to pay hospitals directly in seconds or minutes, and when you're able to answer the phones and service the client even faster and better than we've done historically, we think not only is our retention rates going to be able to be sustained at higher levels than historical averages, but we'll see higher referral in Add a Pet because happy clients mean they're telling their friends and adding pets. So confidence that we have the road map, and it's up to the team to execute. I'm sure over the next few years to come, there'll be bumps along the way, but we're feeling pretty positive.
And then you asked about any trends in July, and as I mentioned just previously, we've had seen the retention trends continue. We're seeing really strong results everywhere in July. And the veterinarians are really running off their feet right now. We're seeing a lot of wellness visits. There are some challenges for us at curbside check-in to learn how to best access that. So I think there's some opportunities to learn. But July has trended similar to Q2.
Okay, thank you, Daryl.
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