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Actionable Cohort Analysis: How to use behavior-based cohorting to maximize engagement and retention
The document discusses how to utilize behavior-based cohort analysis for enhancing user engagement and retention in apps. It emphasizes the importance of grouping users by specific actions rather than acquisition dates to identify strategies that drive growth, highlighting a process involving hypothesis generation, cohort creation, and analysis of retention reports. Key insights include that actions such as joining a community or completing a profile on the first day significantly correlate with improved retention rates.
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Actionable Cohort Analysis: How to use behavior-based cohorting to maximize engagement and retention
- 1. Know your users.Grow your app. Actionable Cohort Analysis: How to use behavior-based cohorting to maximize engagement and retention. Spenser Skates CEO and Cofounder, Amplitude Analytics
- 2. Let’s break down‘analytics.’
- 3. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue The Three Levels of Analytics
- 4. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue The Three Levels of Analytics
- 5. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue Most companies are here. The Three Levels of Analytics
- 6. Completing 50% ofProfile Adding 7 Friends What Drives Long Term Retention? Posting on a wall Optimized experience around adding and discovering friends.
- 7. Properties that havea review Properties with Professional Photography What Drives Revenue? Properties with a personalized description Shifted from a search based to a browse based experience to encourage aspirational travel
- 8. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue Most companies are here. The Three Levels of Analytics
- 9. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue Most companies are here. The Three Levels of Analytics
- 10. Level 3: Whatdrives growth Level 2: Where are my problems Level 1: Counters Behavior-Based Cohorting Data Science Companies at this level: Facebook, Amazon, Netflix, Zynga Funnels Retention Segmentation Events DAU, MAU, Revenue Most companies are here. The Three Levels of Analytics
- 11. What is abehavioral cohort?
- 12. What is abehavioral cohort? In traditional analytics, a “cohort” has referred to an Acquisition Date Cohort: A group of users who started in the same time period, and are then tracked together over time.
- 13. What is abehavioral cohort? Acquisition Date Cohorts can tell you that users who joined in June are retaining better than users who joined in May…but it’s hard to take action on that information.
- 14. What is abehavioral cohort? Behavioral cohorting allows you to group your users based on specific actions that they have or have not taken in your app or website. This helps you identify user actions or product features in your app that drive growth.
- 15. Compare retention betweenbehavioral cohorts Users who add 7 Friends in 10 Days. Users who do NOT add 7 friends in 10 days. 100% 80% 60% 40% 20% 0% Day 14 Users who add 7 friends in 10 days: 36.1% Day 0 Day 1 Day 3 Day 7 Day 14 Day 30 Product Decision: Optimize Facebook experience around adding and discovering friends
- 16. How to usebehavioral cohorting to make product decisions Come up with a hypothesis on what user actions lead to long term retention Apply cohorts to retention reports and search for insights Test the hypothesis by creating cohorts based on specific user actions Step 1 Step 3Step 2
- 17. Let’s walk throughan example.
- 18. Step 1: Comeup with a hypothesis Example: Social music app Key user actions on the 1st day: • Joining a community • Completing user profile Come up with a hypothesis on what user actions lead to long term retention
- 19. Step 2: Createcohorts to test your hypothesis Cohort: Users who joined at least 1 community on the 1st day of use
- 20. Step 2: Createcohorts to test your hypothesis Inverse Cohort: Users who did NOT join at least 1 community on the 1st day of use
- 21. Step 3: Applycohorts to retention reports
- 22. Step 3: Applycohorts to retention reports
- 23. Step 3: Applycohorts to retention reports
- 24. Step 3: Applycohorts to retention reports
- 25. Step 3: Applycohorts to retention reports Takeaway: Users who join at least 1 community on the 1st day of app use have significantly increased 7 and 14 day retention compared to users who do not join a community
- 26. Now we canrepeat this process for our other candidate action: Completing the user profile on the 1st day
- 27. Cohort: Users whocompleted their profile on the 1st day of use
- 28. Takeaway: Users completetheir profile on the 1st day of app use have significantly increased 7 and 14 day retention compared to users who do not complete their profile Cohort: Users who completed their profile on the 1st day of use
- 29. Both joining acommunity and completing a profile on the first day correlate with improved retention. Let’s compare the 2 pairs of cohorts on the same graph. Now what?
- 30. Takeaway: Joining acommunity has a greater effect on retention than completing a profile.
- 31. Takeaway: Joining acommunity has a greater effect on retention than completing a profile. Product Decision: Encourage users to join a community during onboarding experience.
- 32. • Unlike traditionalacquisition date cohorts, behavioral cohorts group users by specific actions they take in your product • Behavioral cohorting allows you to discover the actions that can maximize long-term retention, just like Facebook’s “7 friends in 10 days.” • There are 3 steps to behavioral cohort analysis: • Come up with a hypothesis of actions that promote retention • Create cohorts to test that hypothesis • Apply the cohorts to retention or engagement reports Summing Up
- 33.
Editor's Notes
- #3 ‘Analytics’ at this point is such a noisy term – let’s break down what we mean when we talk about analytics.
- #12 ‘Analytics’ at this point is such a noisy term – let’s break down what we mean when we talk about analytics.
- #13 First define traditional cohort, then what a behavioral cohort is.
- #14 First define traditional cohort, then what a behavioral cohort is.
- #15 First define traditional cohort, then what a behavioral cohort is.
- #16 Retention graph
- #19 First define traditional cohort, then what a behavioral cohort is.
- #20 First define traditional cohort, then what a behavioral cohort is.
- #21 First define traditional cohort, then what a behavioral cohort is.
- #22 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #23 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #24 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #25 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #26 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #27 First define traditional cohort, then what a behavioral cohort is.
- #28 First define traditional cohort, then what a behavioral cohort is.
- #29 This is the retention module – daily (Nth day) retention for new users over the last 30 days. We can add our cohorts in the USER SEGMENTS sidebar to compare retention between cohorts.
- #30 Feel free to reach out w/ questions
- #31 Both of the inverse cohorts (not joined community and not completed profile) have similar retentions.
- #32 Both of the inverse cohorts (not joined community and not completed profile) have similar retentions.
- #33 Feel free to reach out w/ questions
- #34 Feel free to reach out w/ questions
- #35 Feel free to reach out w/ questions