Are you taking seriously your retention strategy?

published on 14 August 2023

Each month, your business spends $x in acquiring new users but will lose a % of them week by week.

To be in the top 1% of companies that implement an efficient Retention strategy --> make sure to include these tips!

1️⃣ Measure your most important KPIs and user journeys

πŸ‘‰ We cannot improve what we cannot measure. Define your North Star metric and a constellation of 5 key metrics to track on time and against objectives. 

πŸ‘‰ Identify the screens, actions, or buttons that make users drop off the journey β€”> Create funnels for your most important journeys and review them daily or weekly

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πŸ‘‰ Implement a product analytics tool to achieve this. The best ones in the market have free plans for MSB, like Mixpanel or Amplitude.

πŸ‘‰ Measure Retention rates: begin watching Day 1 - Retention. Understand how your users interact within the first day of downloading your app. Do they complete the setup/login process during the first hour? Then track Day 7- to validate if users are finding enough value as to return. Finally, we want users to build a habit around our product, so well seek for Day 30- Retention or M1, M2, M3 (montlhy rates).

2️⃣ Engage with your users at the exact moment to prevent churn.

πŸ‘‰ Implement a Customer engagement platform (CEP) like Braze, Iterable or Clevertap.

πŸ’° These platforms charge you per events or MAUs consumtpion, but not by the amount of messages you send.  

πŸ‘‰ Automate action event push notifications or inapp messages with different actions paths according to user behavior. Run AB tests constantly to find the best combination of timing, frequency, message, channel. 

πŸ‘‰ Automate also Whatsapp, sms and email channels!

πŸͺ„In our >4 years exp managing digital products we have never seen correlation between amount of pushes sent and uninstall rate. Of course you should be respectfull of your users and consider sending only relevant messages.

πŸ‘‰ Push notifications could have very transactional intentions or just help to create awareness and TOM while competing with other apps in the users phone, 

3️⃣ Customization is a must

Gather all the information you can about your users to bring better experiences when approaching them

πŸ‘‰ I’m not only talking about name and age, you can also ask users in the onboarding about their primary use case, their preferences, and what kind of value they are seeking in your app.

πŸͺ„ Using a little of code you can include your user's favourite products/brands or even send a recomendation based on past behavour! 

πŸ‘‰ Connect your Product Analytics (PA) tool and Customer Engagment Platform (CEP) to get most out of them! You can dinamically export cohorts from your PA tool to send them very specific messages with your CEP. Example: users that have been active buyers in the las 5 months, but not in the last month --> track this users in the PA tool and send them a special discount message with the CEP. 

4️⃣ Differentiate cohorts: not all users behave the same.

πŸ‘‰ Some users find lots of value in your product and use it very often to solve their needs, and some others, don't come to it first thing. Your audience will be naturally split into power, core, and casual users. This is a fact, don't fight it. Just define the criteria to segment each (like usage frequency) and give each cohort a particular treatment.

πŸͺ„ Pay special attention to your dormant users β€”> engage with them before it's too late. These are the ones that used to be active (power or core) and now are engaging less week by week.

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