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Emre Güney - Why retention matters - Digital Zone 2019

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The presentation about Retention that was presented at the Digital Zone conference 2019 and the https://www.time4marketing.com podcast in episode #27

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Emre Güney - Why retention matters - Digital Zone 2019

  1. 1. Why retention matters? Emre Güney - Global Senior Lifecycle Manager
  2. 2. What is retention? Why retention is important? What we can do to improve retention? Today’s Plan
  3. 3. What is retention?
  4. 4. The ability of a company or product to retain its customers over some specified period.
  5. 5. “How do we acquire more users?” From this
  6. 6. “How do we get better at keeping the users we already have?” To this
  7. 7. Why retention is important?
  8. 8. Basic approach If users don’t return, your entire user base will eventually disappear due to churn.
  9. 9. Medium approach CLTV = ARPU * Lifetime
  10. 10. Medium approach CLTV = ARPU * Lifetime Retention
  11. 11. Medium approach Higher CLTV means higher CAC you can spend
  12. 12. More sophisticated approach It is THE ONE growth metric that moves acquisition, monetization and virality. (This is important because if you improve retention, you’ll also improve the rest of your funnel.) Source: Reforge
  13. 13. Retention drives acquisition Retention improves monetisation Retention builds an acquisition competitive edge As you retain more users, those additional users take more of the key actions that accelerate acquisition, either through sharing, inviting, word-of-mouth, or creating content. As more of those new users retain, more are acquired - improving retention sets off a self-reinforcing cycle that drives acquisition. You can retain a larger proportion of a cohort, and in doing so, make more money from that cohort within a given period of time, and you can increase the length of time that a cohort retains, increasing LTV. As you increase retention, monetisation, and LTV, you can pay more to acquire a customer. In doing so, you can push competitors out of acquisition channels, open up new channels that were previously too expensive, and grow faster.
  14. 14. How retention drives acquisition - UGC for Pinterest example Source: Reforge
  15. 15. Source: Reforge How retention drives acquisition – Usage driven virality Loom example
  16. 16. How retention drives monetisation Source: Reforge
  17. 17. Bad news
  18. 18. The average app loses 77% of users in just 3 days. Source: CleverTap
  19. 19. Improving retention is really hard. (and getting harder)
  20. 20. Fierce competition
  21. 21. Fierce competition Source: Reforge
  22. 22. Channel fatigue Source: Reforge
  23. 23. Monopolies They are levering their network effects to build monopolies that have the power to absorb any new start-up or product that could threaten their dominance. Source: Reforge
  24. 24. What we can do to improve retention?
  25. 25. Phase 1 • The first 72 hours after acquisition is the most critical, since it’s where users get their first impression of your product. • Show new users the value of your product and get them to the “aha moment” ASAP. Initial Retention
  26. 26. Phase 2 • Mid-term retention is about forming, then reinforcing, your users’ habits around your product. • Eventually they won’t need reminders to open the product, they’ll keep coming back on their own. Mid-term Retention
  27. 27. Frequency matters
  28. 28. Phase 3 • This final phase of retention is about continuously improving the product so it stays valuable to users. And understand your users’ needs! • Keep finding ways to solve their problems by adding new features, improving UI and UX, and fixing bugs. Long-term Retention
  29. 29. A final checklist
  30. 30. Get your benchmarks The most crucial ones to watch are: day 1, day 7, day 30, and month 6. Source: CleverTap
  31. 31. Track the Right Segments These three segments are key: Source: CleverTap
  32. 32. Set S.M.A.R.T. Retention Goals Create S.M.A.R.T. goals: Specific, Measurable, Attainable, Relevant, and Time-bound. Source: CleverTap
  33. 33. Test, Analyse, Repeat Focus your efforts on where users drop off and become inactive Source: CleverTap Test Analyse Repeat Test your hypotheses, then analyse your results so you learn and improve. Repeat until you see fewer uninstalls/drop-offs and more consistently active users.
  34. 34. Retention is a marathon, not a sprint. Every failed experiment leads you closer to finding the winning combinations that keep your users loyal to your product.
  35. 35. Thank you.

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