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The Holy Grail of Traction - Brian Balfour, HubSpot

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Brian Balfour, VP Growth, HubSpot shares why customer and user retention is the most important factor in traction and growth, the anatomy of retention, and strategies and tactics to improve and optimize the various pieces of retention. Traction Conf Vancouver 2015 - http://tractionconf.io.

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The Holy Grail of Traction - Brian Balfour, HubSpot

  1. 1. THE HOLY GRAIL OF GROWTH BY: BRIAN BALFOUR
  2. 2. DISCLAIMER: ALL DATA IN THIS PRESENTATION IS FAKE (don’t go public if you want to present real data) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  3. 3. WHAT SEPARATES THE TOP 1% FROM THE BOTTOM 99% IN GROWTH? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  4. 4. Brian Balfour :: @bbalfour :: http://www.coelevate.com ANSWER…RETENTION! GRAPH CREDIT: WWW.ANDREWCHEN.CO & QUETTRA
  5. 5. IF YOU HAVE POOR RETENTION NOTHING ELSE MATTERS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  6. 6. BAD RETENTION GRAPH CREDIT: DAN WOLCHONOK - SR PM @ SIDEKICK Brian Balfour :: @bbalfour :: http://www.coelevate.com
  7. 7. GOOD RETENTION GRAPH CREDIT: DAN WOLCHONOK - SR PM @ SIDEKICK Brian Balfour :: @bbalfour :: http://www.coelevate.com
  8. 8. AWESOME RETENTION GRAPH CREDIT: DAN WOLCHONOK - SR PM @ SIDEKICK Brian Balfour :: @bbalfour :: http://www.coelevate.com
  9. 9. BUT THERE’S MORE… INCREASE RETENTION AFFORD HIGHER CPA INCREASE LTV INCREASE RETENTION DECREASE eCPA INCREASE VIRALITY INCREASE RETENTION DECREASE PAYBACK PERIOD INCREASE UPGRADE RATES Brian Balfour :: @bbalfour :: http://www.coelevate.com
  10. 10. EVERY IMPROVEMENT TO RETENTION ALSO IMPROVES VIRALITY, LTV, AND PAYBACK PERIOD Brian Balfour :: @bbalfour :: http://www.coelevate.com
  11. 11. THE ANATOMY OF RETENTION RETENTION COHORTS AND CURVES
  12. 12. IT ALL STARTS WITH COHORTS… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  13. 13. RETENTION COHORT CURVE 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! Brian Balfour :: @bbalfour :: http://www.coelevate.com
  14. 14. WHAT IS GOOD AND WHAT IS BAD? 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! THE MOST IMPORTANT ELEMENT IS THAT IT FLATTENS GOOD BAD Brian Balfour :: @bbalfour :: http://www.coelevate.com
  15. 15. TO UNDERSTAND AND OPTIMIZE RETENTION YOU NEED TO THINK ABOUT IT IN ACTIONABLE PIECES Brian Balfour :: @bbalfour :: http://www.coelevate.com
  16. 16. WEEK ONE RETENTION 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! W1 RETENTION GET USERS TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  17. 17. IMPROVING W1 RETENTION SHIFTS THE CURVE UP 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! BETTER ONBOARDING CLEARER MESSAGING SEGMENTED NUX Brian Balfour :: @bbalfour :: http://www.coelevate.com
  18. 18. MID TERM RETENTION 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! MID TERM RETENTION GET USERS TO CREATE HABITS AROUND CORE VALUE (RE-WIRE) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  19. 19. LONG TERM RETENTION 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! LONG TERM RETENTION GET USERS TO EXPERIENCE CORE VALUE AS OFTEN AS POSSIBLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  20. 20. SLOW/FLATTEN CURVE OFF 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! FEATURE REFINEMENT RETENTION HOOKS PRODUCT QUALITY RESSURECTION Brian Balfour :: @bbalfour :: http://www.coelevate.com
  21. 21. NOTICE I DIDN’T SAY NEW FEATURES Brian Balfour :: @bbalfour :: http://www.coelevate.com
  22. 22. OPTIMIZING/IMPROVING RETENTION WEEK ONE RETENTION
  23. 23. SIDEKICK RETENTION CURVE DEC 2014 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! % Active! TIME! Problem #2: Not Flat! Problem #1: ! Over time W1 Retention Was Decreasing! Brian Balfour :: @bbalfour :: http://www.coelevate.com
  24. 24. 1 SEGMENTATION Segmented retention curves by different factors: Acquisition source, email client, persona, type of email HOW WE FIGURED OUT IMPROVEMENTS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  25. 25. Brian Balfour :: @bbalfour :: http://www.coelevate.com CORPORATE VS FREEMAIL 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! Corporate Emails! Gmail and Other Freemail! % Active! Time! Higher W1 Retention! Slower User Churn!
  26. 26. 1 2 QUANT INDICATORS SEGMENTATION Segmented retention curves by different factors: Acquisition source, email client, persona, type of email Looked for quantitative indicators by comparing data between those who churned and those who retained. Brian Balfour :: @bbalfour :: http://www.coelevate.com HOW WE FIGURED OUT IMPROVEMENTS
  27. 27. Brian Balfour :: @bbalfour :: http://www.coelevate.com SOME OF OUR FINDINGS WTF?!!
  28. 28. 1 2 QUANT INDICATORS SEGMENTATION 3 1:1 QUAL DATA Segmented retention curves by different factors: Acquisition source, email client, persona, type of email Looked for quantitative indicators by comparing data between those who churned and those who retained. Extremely targeted 1:1 emails to users asking open ended question. Brian Balfour :: @bbalfour :: http://www.coelevate.com HOW WE FIGURED OUT IMPROVEMENTS
  29. 29. Brian Balfour :: @bbalfour :: http://www.coelevate.com SOME OF OUR FINDINGS “Didn’t have time to figure out.”!
  30. 30. 68 EXPERIMENTS LATER... Brian Balfour :: @bbalfour :: http://www.coelevate.com
  31. 31. Brian Balfour :: @bbalfour :: http://www.coelevate.com RETENTION CURVES 0%! 25%! 50%! 75%! 100%! 125%! 0! 5! 10! 15! 20! Older Cohorts! Newer Cohort 1! Newer Cohort 2! % Users ! Still Active! Time! Woohoo!! Curves Shift Up In Latest Cohorts! Woohoo!! Old Cohorts Flatten!
  32. 32. STRATEGIES THAT WORKED FOR US 1 SEPARATING NEW USER EXPERIENCE 2 SEGMENTING BASED ON PERSONA 3 SWITCHING USER CONTEXT PERSONAL -> WORK 4 5 TESTING MEDIUM OF EDUCATION CONTENT
  33. 33. THANKS! MORE AT: WWW.COELEVATE.COM

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