Did you know that a 5% improvement in customer retention rates can drive a 25 to 95% increase in profits? Building loyal relationships with your users and customers is the biggest driver to growth and increased profitability for digital consumer businesses today.
The key is to align your user segmentation and omnichannel marketing automation activity to significantly improve retention metrics and driving sustainable growth.
In this slideshare, you can expect to learn all about retention as a growth driver
the following points:
- The current state of mobile apps
- Understanding the leaky bucket problem
- User retention metrics to focus on
- The pillars of sustainable growth and retention
- How leading businesses are successfully driving growth with user retention
1. USER RETENTION
IS THE NEW GROWTH
Raghav Kumar
Head of Customer Marketing
& APAC Marketing Lead
2. WHAT IS USER RETENTION?
#AShiftIsHappening
User Retention refers to the ability of a company or product to retain its
users over some specified period. High retention means customers of the
business tend to return to, continue to buy or in some other way not defect
to another product or business, or to non-use entirely
3. THE LEAKY BUCKET
PROBLEM IS REAL
Average User Retention
for Mobile Apps
%UsersStillActive
Days Since App Install
Source: Quettra, Andrew Chen
of users are lost
in the first 3 months
90%
5. DIFFERENCE BETWEEN
WINNING & LOSING
67%
more revenue is what you
can expect from a repeat
customer compared to a
new customer
- INC
25x
more expensive to acquire
a new customer instead of
retaining your existing
base
- Harvard Business Review
75%
increase in profits you
can expect by increasing
your customer retention
rate by just 5%
- Bain & Company
12. Common Silos today:
o Analytics platform independent from
Marketing Automation
o Different Marketing Automation tools
per channel
o Independent AB Testing
ELIMINATE
USER DATA
SILOS
1
13. o Monthly Retention Rate (RR)
o Key Conversion Rates (CRO)
o Lifetime Value (LTV)
ALIGN ON
THREE CORE
METRICS
2
15. CHOOSING YOUR MARTECH PLATFORM
Use behavioral,
psychographic, and RFM
insights to segment and
engage using right message
AI Based
User Segmentation
Bring all data together in a
single view to measure and
understand engagement
360o Customer
Data Platform
Connect with your users in
the preferred messaging
channel at the right time
Omni-Channel
Engagement
16. USER SEGMENTATION STRATEGIES
RFM Based
o Recency & Frequency of
use
o 10 distinct segments
o Champions/ Loyal users
vs. At Risk or Hibernating
users
o Awareness
o Interest
o Converted
AIC Framework
o Most Likely
o Moderately Likely
o Least Likely
Intent Based
17. ADOPTING A NEW WAY OF THINKING
A Unified Solution for User Retention
M OBILE & W EB
ANALYTICS
CRM / CDP
PLATFORM
M ARKETING
AUTOM ATION
OM NICHANNEL
M ARKETING AUTOM ATION
REALTIME ANALYTICS
& INSIGHTS
NATIVE UI
EXPERIENCES
AUTOMATED
USER SEGM ENTATION
AB TESTING
OLD VS.
18. PROVEN ACROSS INDUSTRIES
Helping Consumer Brands Retain their Users for Life
FINANCE
FOOD & DRINK
MEDIA & ENTERTAINMENT
TRAVEL & HOSPITALITY
1.5 Billion
Unique Devices Reached
150 Billion
User Data Points per Month
8000
Customers Globally
80 Billion
Messages Sent per Month
TELECOM ECOMMERCE
19. Improving User Retention
for a Record Breaking
10.3M Concurrent Users
CTRs using data
based insights
from Pivots
3X
Higher Average
Watch Time per
session
12%
• RFM Based Segmentation
• User Retention Cohorts
• Flows
SOLUTIONS
20. Retaining 5x More Customers
with Advanced User Insights
More users retained
with an improved
onboarding flow for
new users
5X
Inactive and churned
users re-engaged with
personalized
campaigns
70%
• User Activation & Retention
• Brand Recall
• Marketing Automation
SOLUTIONS
21. Rapid Growth & CLTV
Driven by RFM Based
Automated Segmentation
Higher Revenue and
LTV with RFM based
segmentation and
engagement campaigns
7%
Higher Engagement
with Onboarding
Campaigns on
CleverTap journeys
5%
• RFM Based Segmentation
• Personalized at Scale
• Journeys
SOLUTIONS
22. Maximizing Conversion Rates
with micro Segmentation and
detailed User Insights
Higher conversion rates
with Campaign A/B
testing and system
control testing
4X
Higher Engagement
with Onboarding
Campaigns on
CleverTap journeys
43%
• Real-Time User Insights
• RFM Based Segmentation
• A/B Testing & Control Testing
SOLUTIONS
By just retaining 10% of your users month-over-month, you get 15x multiplier on revenue
<< NEED TO MAKE THIS SLIDE BETTER
Build this model and slide also properly
50% increase in retention should lead to some 100x increase in revenue
>>
Your retention strategy is how you maximize the profitability of each customer.
For example, in this graph, each store has 100 customers buying a $10 item each month. The yellow store is retaining 5% of those customers each month, and the orange store is retaining 10%. The 2x increase can lead to rapid growth that is difficult to match with straight acquisition.
basically putting our CleverTap Retention Platform (the fitted in puzzle pieces) in the center of the slide, and all around the slide I want to put logos of all our partners but in some buckets. So an “attribution” bucket can have logos of Appsflyer, Adjust, Branch etc. that we integrate with; an Email bucket can have Sendgrid, Mandrill etc. logos; for some “data platform” bucket we can have Segment and MParticle logos, even for an “analytics” bucket we can have Amplitude, MixPanel etc. logos to show we can get data streaming in from these platforms also and more