Did you know? Increasing customer retention rates by 5% increases profits by 25% to 95%! This was the deck used for the Growth Hacking Indonesia event April 8th, 2015. This event was all about customer retention strategies for startups, an area that is too often being neglected by founders, even though studies have shown that for example for e-commerce companies, 80% of future profits come from only 20% of existing customers! Similar statistics are readily available for other industries, which is why many growth hackers consider customer retention to be the most important stage of the “Growth Hacking Funnel”. The focus was on tactics and tools to achieve high costumer retention rates and sustainable long-term growth. The ultimate goal of customer retention is to get your customers to use your product in such a way that it becomes habiutal, an art only few startups manage to master. Enjoy!

1. Growth Hacking
Customer Retention
Steven Kim, CEO of Qraved
steven@qraved.com

2. What is Customer Retention?
Refers to that proportion of customers who come back to your site
and use your product on a regular basis
Acquisition Activation Retention Referral Revenue
Customers visit
the site
through various
acquisition
channels
Customers have
enjoyed their first
time experience
in your site
Customers start
referring the product
to others (Word of
Mouth)
Customers
conduct
monetizing
behavior
Customers come
back and visit the
site multiple times
The Growth Funnel
@growthhackasia @qraved

3. Retention: Base for Growth
TextTextTextAcquisition
Activation
Retention
Referral
Revenue
EARLY STAGE
GROWTH STAGE
The starting point of your start-up’s
“GROWTH STAGE”
• If the ABSOLUTE number of customers is
increasing at a point
• The absolute number going to the next stage will
be increased
• Although retention rate is the same
@growthhackasia @qraved

4. Why Retention?
• Referrals!
Returning customers =
free marketing agents
Reference: The Economics of E-Loyalty, Harvard Business School http://hbswk.hbs.edu/archive/1590.html
Online customer acquisition is expensive
• ‘Costs 20% to 40% more for pure-play
Internet companies than for
traditional retailers’
• ‘Repeat customers spend more
than 2x as much in months 24-30 of
their relationships than they do in
the first six months’
@growthhackasia @qraved

5. A Common Misunderstanding
Myth: A bad experience drives customers to leave.
Reality: “A series of episodes causes this over time”
Reference: Adapting to the realities of churn Pg.2 <Breaking the back of customer churn> by Bain & Company
URL: http://www.bain.com/Images/BAIN_BRIEF_Breaking_the_back_of_customer_churn.pdf
1. Tedious registration process
2. Inaccurate search feature
3. Slow loading time
4. Too many ads
5. Narrow range of products
6. Bad UI/UX
1. Irrelevant subject
2. Too frequent
3. Bad design/alignment
4. Content unattractive
1. Long waiting time
2. Slow response/follow up
3. Untrained staff
4. Unsatisfactory service
Value Prop Communication & Relevancy Quality of Service
@growthhackasia @qraved

6. HOW DO WE KNOW?
HOW DO WE IMPLEMENT?
@growthhackasia @qraved

7. Traditional Way vs Growth Hacking
Traditional Approach
• Decisions based on opinions
• Data-informed
• Makes people want the
product
• Focus on acquisition &
activation
• Unclear funnel
Growth Hacking Approach
• Decisions based on data
• Data-driven
• Everything is measured
• Analytical
• Makes products that people
want
• A/B testing
• Retention & product
validation prioritized
• Clearly defined funnels
@growthhackasia @qraved

8. Identify & Define Your Goal
WHO IS YOUR AUDIENCE? HOW OFTEN? WHAT WILL YOU MEASURE?
• KEY in retention hacking:
Having good customers
• Ideal customer profile?
• Frequency?
• Timing?
• When in the life cycle?
• Define ACTIVE vs CHURNED
• What metrics?
• e.g Simply visits? Logins?
• Cohort analysis?
@growthhackasia @qraved

9. ?
Understanding Your Customers is the Key
Key : NEED A GOOD UNDERSTANDING of why your customers come back
Behavioral Attitudinal
• Quality
• Engaged
• Original Products
• Occasional buyer
• Discount hunter
• Habitual visits
• Frequent buyer
Making returning customers come back MORE often is more
important than bringing churned customers back.
@growthhackasia @qraved

10. “ Companies that centralize and operationalize customer intelligence have :
• 3.5x higher retention rates,
• 20% year-over-year customer lifetime value growth
• 90% greater year-over-year annual company revenues ”
“Customer Analytics, Leveraging Big Data to Achieve Big Results
(Omer Minkara, June 2012)
Customer Insight through Data
A CRUCIAL GROWTH HACKING MENTALITY!
@growthhackasia @qraved

11. Utilising Customer Insight
1. Define the parameters.
2. What is the null hypothesis?
3. Test it with alternatives
Segmentation
Funnel Analysis Cohort AnalysisA/B Testing
@growthhackasia @qraved

12. Do the Analyses:
Identify how often users are coming back & where most leave
www.mixpanel.com
Value Prop
Communication &
Relevancy
Service
• Funnel Analysis
• Exit Survey results
• A/B Test Results
• Timing
• Frequency
• Opens/CTRs
• NPS
Visualising retention status:
Cohort Analysis
x x
=
@growthhackasia @qraved

13. HOW DO WE MAKE USE OF THESE DATA?
@growthhackasia @qraved

14. IF YOU HAVE IDENTIFIED, DO YOUR TESTS.
FREQUENTLY TEST, ITERATE, FREQUENTLY TRACK AND OPTIMIZE
Do the Experiment
Value Prop
Communication &
Relevancy
Service
• Catalogue
• UI/UX
• Tone
• CTAs
• etc
• A/B TESTING for..
• Timing
• Frequency
• Tone
• Design
• Content
• etc
• Tool
• Tone
• Timing
• etc
@growthhackasia @qraved

15. Provide Seamless Customer Experience
Making the product that people want
Increase the value your product provides
• Path : your friends can ask you to do certain
activities
• “Ask your friends to take a picture!”
• Alerted through Push Notifications
• Retention driven through users’ friends on
app.
e.g Building “RETENTION” into the product itself
• Funnel Analysis
• Track where users leave
• What product categories users look for
• Exit Survey results?
@growthhackasia @qraved

16. Communicating with Relevancy
Email Social Media
A/B test Per Channel to optimise your communication
Some parameters to Test & Optimise
- Timing
- Frequency
- Contents
- Design
- Tone
- Personalisation
@growthhackasia @qraved

17. A/B testing with your Emails
• Left: Preview texts
(long)
• Right: Short comment
• On average, click
through increased by
61% after switching to
“comments”
@growthhackasia @qraved

18. Social Media –
the awesome tool for retention.
• Twitter: Content Testing
• Facebook; Frequency testing
Local cuisines vs Non-Local cuisines
Local cuisine posts had almost 5x more click through
Area based vs Cuisine based contents
Area based contents generated 5000% more
organic reach
@growthhackasia @qraved

19. Customer Support
Improving your Customer Experience
• Customer satisfaction & overall experience
• A good case study : Qraved - Zopim chat & Concierge Service
@growthhackasia @qraved

20. People who belong to something stay longer..
Good product, good communication and reach is well optimised.
From this point, Community Building brings retention a level further.
1. Sharing the same values
2. Trust
3. Relationship built
4. Comfortable
5. Users may come back because of the
community members
E.g. Waze
- Trusted information
- Users contribute to the community
@growthhackasia @qraved

21. That’s not it.
Don’t forget the Lost Conversions!
Do not ignore the churns between conversions!
• Retargeting & Remarketing
Also GDN…
@growthhackasia @qraved

22. The Homework is to Optimise
Track
Analyse
Test
Iterate
@growthhackasia @qraved

23. THANK YOU
@growthhackasia @qraved

24. CREATING A BETTERDINING
EXPERIENCE
www.qraved.com