Why User Retention is the KEY to Growth and Traction

PAUL BOYCE, CoFounder & CEO

www.popcornmetrics.com info@popcornmetrics.com @popcornmetrics

Traction and Growth:why retention matters

I’m inspired by:

Alex Schultz (VP Growth Facebook),

Brian Balfour (VP Growth Hubspot), Dan Wolchonok (Growth Hubspot) Andrew Chen (essays on growth)

RETENTION = “keeping as many users for

as long as possible.”

if you aren’t retaining:● low LTV (Life Time Value)● limited Acquisition channels● less referrals (virality) ● poor traction (no value?)● funding (difficult?)

“If you don’t have good retention, nothing else matters.”

Brian Balfour, VP Growth, Hubspot

BAD RetentionCOHORTS SHRINK

SOURCE: Dan Wolchonok (Hubspot)

GOOD RetentionCOHORTS RETAIN

SOURCE: Dan Wolchonok (Hubspot)

REAL DATA:Average retention rates for Android apps.

Average Retention:

Android apps

SOURCE: QUETTRA / ANDREW CHEN

Retention: Top 5000Android

SOURCE: QUETTRA / ANDREW CHEN

Day 1 retention has a massive impact.

so, how do I improve retention?

first, build a retention curve:

go read this article:bit.ly/retention-curve

GOAL: Push the curve up.

prioritised1, w1

SOURCE: POPCORNMETRICS.COM

connect people with what makes them stick. ASAP!

facebook: connect friends (10 in 14 days)zapier: create your first Zapairbnb: find that first “cool” listingtrello: create project, add coworkersintercom.io: install JS, send first message

find the value.look at onboarding.

1. get a baseline.2. get inspiration.3. prioritise ideas.4. run experiments.5. measure results.6. learn what works. 7. repeat.

formula:

that blog post (again):

bit.ly/retention-curve

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questions?

thank you.

Retention Rates Vary:Social Media: 80%

Ecommerce: 20-30%

Figure out what creates value.Get users to that value: fast.

why retention matters:● higher LTV● afford higher CAC● increase Referrals (virality) ● early traction: Prove Value● access funding? (ask me)www.popcornmetrics.com info@popcornmetrics.com @popcornmetrics

Retention will

impress investors.

SOURCE: Mamoon Hamid, Partner at The Social+Capital Partnership (VC)

5 ideas to test:TARGET: first few days, especially D1● messaging● onboarding flow● find your “magic moment”● look at best users● get to value ASAP

Why User Retention is the KEY to Growth and Traction

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