[CXL Live 16] Optimizing Retention - The Silent Killer and King of Growth by Brian Balfour

transcript

RETENTION BY: BRIAN BALFOUR

WWW.COELEVATE.COM

WHAT SEPARATES THE TOP 1% FROM THE BOTTOM 99%

IN GROWTH?

Brian Balfour :: @bbalfour :: http://www.coelevate.com

ANSWER…RETENTION! GRAPH CREDIT: WWW.ANDREWCHEN.CO & QUETTRA

IF YOU HAVE POOR RETENTION NOTHING ELSE MATTERS

BAD RETENTION

GOOD RETENTION

AWESOME RETENTION $$$ Retention w/ Net Negative Churn

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

EVERY IMPROVEMENT TO RETENTION ALSO IMPROVES VIRALITY, LTV, AND

PAYBACK PERIOD

HOW DO WE IMPROVE RETENTION?

IT ALL STARTS WITH COHORTS…

RETENTION COHORT CURVE

0 5 10 15 20

% ACTIVE

WHAT IS GOOD AND WHAT IS BAD?

0 5 10 15 20

% Active

THE MOST IMPORTANT ELEMENT IS THAT IT FLATTENS

IF RETENTION TRENDS TOWARDS ZERO YOU MIGHT HAVE A PRODUCT MARKET FIT PROBLEM NOT AN OPTIMIZATION

PROBLEM.

OPTIMIZING/IMPROVING RETENTION WEEK ONE RETENTION

SIDEKICK RETENTION CURVE DEC 2014

0 5 10 15 20

% Active

Problem #2: Not Flat

Problem #1: Over time W1 Retention Was Decreasing

STEP ONE SEGMENT THE CURVE

SEGMENTATION…

1 USER SOURCE

2 ENTRY PATH

3 TECHNOLOGY

4 PERSONA

CORPORATE VS FREEMAIL

0 5 10 15 20

Corporate Emails Gmail and Other Freemail

% Active

Higher W1 Retention

Slower User Churn

STEP TWO WHAT PART OF RETENTION?

NEW USER EXPERIENCE (D1, W1, M1)

0 5 10 15 20

% Active

W1 RETENTION

GET USERS TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE

MID TERM RETENTION

0 5 10 15 20

% Active

MID TERM RETENTION

GET USERS TO CREATE HABITS AROUND CORE VALUE (RE-WIRE)

LONG TERM RETENTION

0 5 10 15 20

% Active

LONG TERM RETENTION

GET USERS TO EXPERIENCE CORE VALUE AS OFTEN AS POSSIBLE

RESURRECTION

0 5 10 15 20

% Active

GET USERS TO REFORM THEIR OPINION

DORMANT USERS

STEP THREE DIG IN

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.

FOR ANY PART OF THE CURVE…

NEW USER EXPERIENCE (D1, W1, M1)

0 5 10 15 20

% Active

W1 RETENTION

GET USERS TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE

SOME OF OUR FINDINGS

“Didn’t have time to

figure out.”

STRATEGIES THAT WORKED FOR US

1 SEPARATING NEW USER EXPERIENCE

2 SEGMENTING BASED ON PERSONA

3 SWITCHING USER CONTEXT PERSONAL -> WORK

TESTING MEDIUM OF EDUCATION

CONTENT

RETENTION CURVES

0 5 10 15 20

Older Cohorts Newer Cohort 1 Newer Cohort 2

% Users Still Active

Woohoo! Curves Shift Up In Latest Cohorts

Woohoo! Old Cohorts Flatten

USERS FORM AN OPINION IN YOUR NEW USER EXPERIENCE. AS A RESULT…

IMPROVING W1 RETENTION SHIFTS THE CURVE UP

0 5 10 15 20

% ACTIVE

THE CHALLENGE…

BALANCING PERMISSIONS WITH FRICTION TO CORE VALUE

PERMISSIONS FRICTION

MID TERM RETENTION

0 5 10 15 20

% Active

MID TERM RETENTION

GET USERS TO CREATE HABITS AROUND CORE VALUE (RE-WIRE)

LONG TERM RETENTION

0 5 10 15 20

% Active

LONG TERM RETENTION

GET USERS TO EXPERIENCE CORE VALUE AS OFTEN AS POSSIBLE

RETENTION LOOPSTRIGGER TIME, LOCATION, PEER INITIATED, etc

CHANNEL EMAIL, SOCIAL,

PUSH, IN-APP

REWARD MESSAGE, PHOTO, CURIOSITY, etc

TRIGGER YOU GOT 5 PROFILE VIEWS. COMPLETE YOUR PROFILE FOR MORE…

CHANNEL EMAIL

REWARD MORE PROFILE VIEWS

BUILDING PROFILE HABIT (MID TERM RETENTION)

LINKEDINTRIGGER JON MILLER ENDORSED YOU FOR MARKETING. YOU SHOULD ENDORSE OTHERS TO GET MORE…

CHANNEL EMAIL

REWARD MORE ENDORSEMENTS

LONG TERM RETENTION

THANKS! MORE AT: WWW.COELEVATE.COM

[CXL Live 16] Optimizing Retention - The Silent Killer and King of Growth by Brian Balfour

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