Calculating the LTV of your app user gives you a lot of information to formulate strategies for acquisition and retention. Watch this presentation by Olive Sen, Director - Strategy & Growth at OLX India who was interviewed by Ashwin SL, head of marketing at MoEngage about how retention strategies affect the cost per DAU. They spoke about - Why do acquisition and retention matter? A brief outline of a typical customer acquisition strategy. What a typical customer retention strategy looks like. An example of how acquisition and retention pan out in a real-world scenario. The one piece of advice to marketers and product owners trying to grow their app's retention rates.

1. Acquisition Vs
Retention -
The Importance of
Customer LTV with
Olive Sen
WEBINAR
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2. Speaker
● Olive Sen
● Director - Strategy & Growth
● OLX India
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3. Helping 550+ clients worldwide
attain massive scale
Recognized by
Market Research and Industry Leaders
55+ Billion
Events Recorded per Month
40+ Billion
Messages Sent per
Month
500+ Million
User Profiles Processed
Every Month
Featured twice as one of the
highest-rated in the
‘Mobile Marketing Automation’ MQ
in terms of customer experience
Digital CX Competency partners
for achieving scale and innovation
with AWS
Vendor Landscape for
Mobile Engagement Automation
solutions
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Acquisition Vs Retention
Let’s take an example

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Let’s consider 5 apps

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30 Day DAU
Let’s say, 100k users download the
apps daily for each of these 5 apps.
And these downloads are all organic
(not paid).
How will the DAU count for each
app look like after 30 days?

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Catching up with “App D” DAU count
How many new users should I acquire “daily” to have the
same number of DAUs as App D? Assuming I don’t
improve my retention rates

8. How much would it cost to reach the same level
of DAU’s as App D?
A Million
Dollars more
every
month..!!!
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9. But Retention % are not the same for Organic and
Paid Channels - What then?
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10. So even a small % decrease in
retention rate can mean 100s
of thousands of dollars in
Acquisition Budgets.
And more budgets to reach
the same number of DAU’s =
Higher cost across the user
lifecycle, which will impact
your LTV.
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11. Customer Acquisition Strategy
Campaigns targeted towards
achieving lower funnel actions
Volume campaigns which are
based on upper funnel actions
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12. Plugging Decrease in DAU’s
1. Optimizing campaigns based on the user journey
drop-offs.
1. Target users who did not perform the required in-app
actions & also dropped off during this period.
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13. How Do You Reduce Churn?
1. Identify core engagement activities- They maybe 1 or several, based on your
app.
1. Divert more users into the core engagement funnels immediately after
acquisition.
1. Create new / additional engagement funnels over time, as we continue to
acquire new sets of users.
1. Try to identify the problems faced by users who churn, and solve these
issues.
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14. Thank You!
Any questions?
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