How to improve user retention rate? Let’s talk about the big thing called “user retention”!

In the Internet industry, users who start using an application within a certain period of time and continue to use the application after a period of time are considered retained users.

The proportion of these users to the new users at that time is the retention rate , which will be counted every 1 unit of time (for example, day, week, month). As the name suggests, retention refers to "how many users stay." Retained users and retention rate reflect the quality of the application and its ability to retain users.

In the Internet age, whether it is an emerging mobile game or a traditional community forum product, whether it is paid or not, it is necessary to maintain user activity. Once user activity decreases, it means user departure or loss. Based on this, the concept of "retention" can be used to analyze the service effectiveness of an application or website and whether it can retain users. Therefore, the retention rate actually reflects a conversion rate , that is, the process of converting initially unstable users into active users, stable users, and loyal users. As the retention rate statistical process continues to extend, we can see the changes in users in different periods.

The reason for this is that retention is aimed at studying newly logged-in users, that is, studying the life cycle of a group of users at a certain point in time in the following days, weeks, and months, and grasping the length of the user's life cycle and the room for improvement we can make from a macro perspective .

So here comes a question, why do we need to study new users? As mentioned earlier, we need to observe the user's life cycle from a macro perspective , so our best approach is to start from the user introduction period. The so-called introduction period is when the user enters the product. Our analysis here is actually very useful because users enter the product from different channels and are pulled into the product through different marketing methods. In this way, we can cross-analyze and grasp the channel quality from one level through the user's later retention situation, such as payment, stickiness, value, and CAC cost.

Generally speaking, indicators such as retention rate need to be tracked continuously over the long term, and should be analyzed based on many factors such as version updates and promotions . From installation to activation, retention, activity, and consumption, users fall silently everywhere on this thorny road - choosing silence or uninstalling. What we need to do is to send a vanguard team to continuously motivate users to move forward: build a user model, create a user incentive system, improve user retention and activity, recall silent users, and increase AR UP value.

Build a user model

Persona (user model) is a fictitious set of user characteristics used to represent a user group. The establishment of a real and accurate user model can serve as a guide at every stage of our product design, strategy, activities, etc.

Persona data factors include user gender, age, region, behavior, interests, etc. In addition, it should also include product-related data, such as first login, usage time, UGC , PV and other product usage data. A product usually designs 3 to 6 user models to represent all user groups. There are many ways to build a user model, which would take another long article. Here we will only introduce a few key steps:

1. User assumptions: Make assumptions about user characteristics and variables (i.e. user concerns) based on the product.

2. Qualitative analysis: Design questions according to the assumptions made above and cluster the observed variables.

3. Validation analysis: Observe the relationship between the data to see which classification variables can effectively distinguish users.

4. Model building: Start building user models based on data tables and survey reports.

Improve user retention and activity

Many operators have given their judgments and countermeasures based on their own optimization experience:

1. Define lost users: Find out the growth stage of inactive users, analyze the reasons for their loss, find their loss warning indicators, and formulate different solutions for prevention. At the same time, it is also crucial to maintain close contact with core users. Direct communication with core users can often help us discover the reasons for user churn more quickly.

2. Create a user incentive system: The user incentive system includes positive incentives and negative incentives (negative incentives are points deductions or other punitive measures). Positive incentives can be divided into three categories: "honor incentives", "emotional incentives" and "interest incentives" . Common forms include rankings, competition maps, levels, medals, points, social mutual assistance, bonus incentives, etc. These "positive incentives" forms + daily tasks + content with attractive retention capabilities can better achieve the effect of stimulating users to continue to retain.

3. PUSH and activities: Message push and attractive activities are essential for promoting activation, but push accuracy, frequency, time period, quality, landing page, etc. are all important factors that determine the push effect, and push optimization should be permanent. It is recommended that you try to write push copy that can arouse emotional resonance. Taobao stores do this most thoroughly, using every possible means to act cute and foolish. The push text messages of Didi and Kuaidi are also very impressive. In short, they try to attract your attention in various ways.

4. Let users drive users: Ten thousand boasts are not as powerful as one social sharing. Guiding users to establish connections with each other is undoubtedly an efficient way to increase activity. In addition to optimizing the product sharing and invitation experience (don’t forget to add incentives to the sharing experience), you can also pay attention to showing the most popular pages or features to the right users, telling them that this content or product has attracted the attention of XXXX people, and using the herd mentality to arouse users’ interest.

5. Regularly update versions and functions: Letting the "little red dot" help you make the "strongest push" is also a good way to awaken obsessive-compulsive users. APP developers all feel that each version update can stimulate users to be active for a period of time. Pay special attention to writing the update notes carefully (you can also act cute and gay at the same time) to increase users' interest in opening them casually after the update.

6. Traffic marketing: Those apps that are suitable for "killing time" but consume a lot of traffic can try to cooperate with traffic operators and tell users in a domineering manner that "the traffic fees incurred by me have been contracted by me" to see if they can win back the hearts of users.

7. Chase to the ends of the earth : Track the transfer path of users after silent loss, and establish channels with high-overlapping APPs to attract silent users back.

8. Reduce operational interruptions: Some unnecessary prompts, cumbersome operating steps, including inappropriate frequent push notifications, will become the reason for users to "exit". Our core pursuit is to make it as easy and quick as possible for users to use the product. The function of clearing the cache must also be considered for users.

It should be noted that if your user churn rate is significantly higher than that of your peers (the retention rates of different categories of apps are different), then what you need to do is no longer to find ways to increase activity, but to check whether your product can really meet user needs, or whether there is a problem with your promotion behavior!

Improve ARUP value

For apps involving consumption, no matter how you attract new users , retain existing users, or promote activation... what ultimately determines the quality of a user is still the ARUP value. The most effective way to increase ARUP value is undoubtedly to offer profit sharing. So here comes the question: How do you make your coupons look enticing?

1. Platform cooperation and promotion: Promotional activities can achieve the maximum effect only when combined with publicity and promotion. If you cooperate with an APP that has a history of cooperation, it is equivalent to having some of the advertising targets be old users, and this conversion is easier to achieve. Some platforms are already promoting points malls or discount information. This will help cultivate better user habits and increase conversion rates. Youqian’s “coupon” task is one example.

2. Seize the opportunity or hot spot: Even if there is no opportunity, you should create a meaningful time point for promotion.

3. Promote hot-selling products: Benlai Life became famous because it promoted Chu Orange, a product with sentiment and quality. Naturally, your promotional activities should give users a "hot-selling product" as bait.

4. Cleverly set up the form of the activity: How to set up your coupons skillfully? Direct discounts don’t seem cool. You should know that we can also use a small coupon in many ways: gifts (preferably mascots or samples related to the purchase content), discounts for accumulated purchases or gifts to others, discounts for designated services or products, combination red envelopes, etc., are all good ways to play.

5. Find celebrities to endorse your campaign: Paying for celebrity endorsements can only be considered a low-end method. A true operational expert can use his or her own packaging or creativity to impress celebrities and encourage spontaneous dissemination.

6. Spontaneous dissemination by netizens: The sharing function among netizens must be set up well, whether it is game mode or sharing red envelopes. Give netizens a reason and they will be willing to share the discounts they have enjoyed with more people.

In short, user retention rate is very important, because without users there will be no stories, and without stories there will be no sweet life of being gay with users!