[CXL Live 16] Optimizing Retention - The Silent Killer and King of Growth by Brian Balfour
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Growth is good, but retention is forever. Brian will show you how to conduct data-driven retention optimization to reduce churn and increase traction.
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[CXL Live 16] Optimizing Retention - The Silent Killer and King of Growth by Brian Balfour
- 2. WHAT SEPARATES THE TOP 1% FROM THE BOTTOM 99% IN GROWTH? Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 3. Brian Balfour :: @bbalfour :: http://www.coelevate.com ANSWER…RETENTION! GRAPH CREDIT: WWW.ANDREWCHEN.CO & QUETTRA
- 4. IF YOU HAVE POOR RETENTION NOTHING ELSE MATTERS Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 5. Brian Balfour :: @bbalfour :: http://www.coelevate.com BAD RETENTION
- 6. Brian Balfour :: @bbalfour :: http://www.coelevate.com GOOD RETENTION
- 7. Brian Balfour :: @bbalfour :: http://www.coelevate.com AWESOME RETENTION $$$ Retention w/ Net Negative Churn
- 8. Brian Balfour :: @bbalfour :: http://www.coelevate.com 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
- 9. EVERY IMPROVEMENT TO RETENTION ALSO IMPROVES VIRALITY, LTV, AND PAYBACK PERIOD Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 10. HOW DO WE IMPROVE RETENTION?
- 11. Brian Balfour :: @bbalfour :: http://www.coelevate.com IT ALL STARTS WITH COHORTS…
- 12. Brian Balfour :: @bbalfour :: http://www.coelevate.com RETENTION COHORT CURVE 0% 25% 50% 75% 100% 0 5 10 15 20 % ACTIVE TIME
- 13. Brian Balfour :: @bbalfour :: http://www.coelevate.com WHAT IS GOOD AND WHAT IS BAD? 0% 25% 50% 75% 100% 0 5 10 15 20 % Active THE MOST IMPORTANT ELEMENT IS THAT IT FLATTENS GOOD BAD
- 14. IF RETENTION TRENDS TOWARDS ZERO YOU MIGHT HAVE A PRODUCT MARKET FIT PROBLEM NOT AN OPTIMIZATION PROBLEM. Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 15. OPTIMIZING/IMPROVING RETENTION WEEK ONE RETENTION
- 16. Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 17. Brian Balfour :: @bbalfour :: http://www.coelevate.com SIDEKICK RETENTION CURVE DEC 2014 0% 25% 50% 75% 100% 0 5 10 15 20 % Active TIME Problem #2: Not Flat Problem #1: Over time W1 Retention Was Decreasing
- 18. STEP ONE SEGMENT THE CURVE Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 19. SEGMENTATION… 1 USER SOURCE 2 ENTRY PATH 3 TECHNOLOGY 4 PERSONA
- 20. Brian Balfour :: @bbalfour :: http://www.coelevate.com CORPORATE VS FREEMAIL 0% 25% 50% 75% 100% 0 5 10 15 20 Corporate Emails Gmail and Other Freemail % Active Time Higher W1 Retention Slower User Churn
- 21. STEP TWO WHAT PART OF RETENTION? Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 22. Brian Balfour :: @bbalfour :: http://www.coelevate.com NEW USER EXPERIENCE (D1, W1, M1) 0% 25% 50% 75% 100% 0 5 10 15 20 % Active W1 RETENTION GET USERS TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE
- 23. Brian Balfour :: @bbalfour :: http://www.coelevate.com MID TERM RETENTION 0% 25% 50% 75% 100% 0 5 10 15 20 % Active MID TERM RETENTION GET USERS TO CREATE HABITS AROUND CORE VALUE (RE-WIRE)
- 24. Brian Balfour :: @bbalfour :: http://www.coelevate.com LONG TERM RETENTION 0% 25% 50% 75% 100% 0 5 10 15 20 % Active LONG TERM RETENTION GET USERS TO EXPERIENCE CORE VALUE AS OFTEN AS POSSIBLE
- 25. Brian Balfour :: @bbalfour :: http://www.coelevate.com RESURRECTION 0% 25% 50% 75% 100% 0 5 10 15 20 % Active GET USERS TO REFORM THEIR OPINION DORMANT USERS
- 26. STEP THREE DIG IN Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 27. 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 FOR ANY PART OF THE CURVE…
- 28. Brian Balfour :: @bbalfour :: http://www.coelevate.com NEW USER EXPERIENCE (D1, W1, M1) 0% 25% 50% 75% 100% 0 5 10 15 20 % Active W1 RETENTION GET USERS TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE
- 29. Brian Balfour :: @bbalfour :: http://www.coelevate.com SOME OF OUR FINDINGS WTF?!
- 30. Brian Balfour :: @bbalfour :: http://www.coelevate.com SOME OF OUR FINDINGS “Didn’t have time to figure out.”
- 31. 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
- 32. Brian Balfour :: @bbalfour :: http://www.coelevate.com RETENTION CURVES 0% 25% 50% 75% 100% 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
- 33. USERS FORM AN OPINION IN YOUR NEW USER EXPERIENCE. AS A RESULT… Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 34. Brian Balfour :: @bbalfour :: http://www.coelevate.com IMPROVING W1 RETENTION SHIFTS THE CURVE UP 0% 25% 50% 75% 100% 0 5 10 15 20 % ACTIVE
- 35. THE CHALLENGE… Brian Balfour :: @bbalfour :: http://www.coelevate.com
- 36. Brian Balfour :: @bbalfour :: http://www.coelevate.com BALANCING PERMISSIONS WITH FRICTION TO CORE VALUE PERMISSIONS FRICTION
- 37. Brian Balfour :: @bbalfour :: http://www.coelevate.com MID TERM RETENTION 0% 25% 50% 75% 100% 0 5 10 15 20 % Active MID TERM RETENTION GET USERS TO CREATE HABITS AROUND CORE VALUE (RE-WIRE)
- 38. Brian Balfour :: @bbalfour :: http://www.coelevate.com LONG TERM RETENTION 0% 25% 50% 75% 100% 0 5 10 15 20 % Active LONG TERM RETENTION GET USERS TO EXPERIENCE CORE VALUE AS OFTEN AS POSSIBLE
- 39. Brian Balfour :: @bbalfour :: http://www.coelevate.com RETENTION LOOPS TRIGGER TIME, LOCATION, PEER INITIATED, etc CHANNEL EMAIL, SOCIAL, PUSH, IN-APP REWARD MESSAGE, PHOTO, CURIOSITY, etc
- 40. Brian Balfour :: @bbalfour :: http://www.coelevate.com LINKEDIN TRIGGER YOU GOT 5 PROFILE VIEWS. COMPLETE YOUR PROFILE FOR MORE… CHANNEL EMAIL REWARD MORE PROFILE VIEWS BUILDING PROFILE HABIT (MID TERM RETENTION)
- 41. Brian Balfour :: @bbalfour :: http://www.coelevate.com LINKEDIN TRIGGER JON MILLER ENDORSED YOU FOR MARKETING. YOU SHOULD ENDORSE OTHERS TO GET MORE… CHANNEL EMAIL REWARD MORE ENDORSEMENTS LONG TERM RETENTION