What to do if user churn rate is too high?

User operation is a very detailed job, and various difficulties are often encountered in actual work scenarios. I remember that not long ago, a friend who was doing user operation for community group buying came to consult me ​​about the problem that the company’s user loss was greater than the number of new users. Today, let’s analyze with you how to sort out ideas when the user churn rate is high .

1. The number of lost users of a product is greater than the number of new users. Where might the problem lie?

When the user churn rate of a user product (user churn rate: the proportion of users who leave and stop using a product within a certain period of time) is too high, it means that the probability of a user leaving is greater. If the number of lost users is greater than the number of new users, it means that the product has a very poor retention ability, and more users leave than come. In the long run, the user pool may dry up.

This may happen for the following reasons:

1. There must be major problems in product design and functions. Most of them are caused by too few designs, lack of novelty, or no design at all for some functions that can improve user retention. For example, in the membership system, such as point redemption, task system, rights mechanism, VIP users, etc., how is the design? Is it good enough? Do users like it? Is there a check-in function? How are users' consumption of red envelopes, cards and coupons? Etc. It is recommended to understand the current data situation.

Products such as content and community are also a means to improve retention. Are there any innovative features related to group buying? Or are their functions completely the same as Meituan’s? In addition, you can also make some small tools that users like to participate in, such as question-and-answer sessions with prizes, etc. Another possibility is that some key parts may have design flaws, from user registration to login to the page the user last visited. I suggest finding technology or data to run the data of each key node. I think it is possible that a key page has a different process. I have encountered this situation before. User path analysis is actually also a funnel in essence. If the retention rate of a certain node is too low, multiplying the coefficient by the coefficient will directly lead to a final retention rate that is too low.

2. Are there any hot-selling products in the category, or are there relatively few categories? Or when it comes to product selection, we don’t do enough research with users, so users don’t really like the products, or they feel that the price-performance ratio is not high. Please also check out this suggestion.

3. There are too few channels for attracting new customers, or these channels have experienced a decline in traffic. For example, this year, it is possible that the traffic of some channels has declined sharply. If you pull out the data of these channels in the past two years and look at the trend chart, you will know. Chase what you should chase. Of course, it is also possible that some channels have already removed the products from the shelves or are no longer cooperating. These situations are possible.

4. There seem to be a lot of problems on the operational side. For example, is it possible that a large number of activities were carried out before, but fewer were done this year due to the epidemic? The quality of users accumulated from the activities would not be very high, and these users have been lost in large numbers this year. This is very normal. Another thing is whether you have used social networks or distribution channels before. Under this year's market conditions, the effectiveness has been discounted, which is also normal. Regarding the impact of the strategy, you need to talk to the operations director or even the VP.

2. Is the focus of operations to increase new users or reduce lost users?

The solution is not to focus on attracting new customers or recalling customers, but to do both and both must be resolved. The reason is very simple. You have to solve the problems at the source, such as attracting new customers, retaining existing customers, promoting activation, converting customers, and recalling existing customers. If the problem of retention capacity is not solved, customers will continue to leave. If the root cause is not eradicated, no matter how many recalls you do, it will be of no use. At most, it will just reduce the losses. The wound is bleeding, and the fewer customers you retain, the better. It's just a little slow. If you can't stop it, it will dry up sooner or later. It's just a matter of time. Therefore, the issues of attracting new customers, retention, and recall must all be considered and resolved. I suggest you follow the steps below to solve this problem: 1. Product and operation. Check all the reasons I listed above. But I estimate that there must be problems in more than one link. I estimate that there may be problems in many links such as products, operations, channels, etc. No matter how much data you look at, you can only find a few points.

2. This is a big problem and the matter is very urgent. It is best to treat it as an emergency project and increase its priority. The Director of Operations or VP of Operations should be the project leader to take the lead in handling this matter. Before that, you need to prepare the materials.

3. Start tracking and solving problems in each link, including products, operations, marketing, channels, etc. Hold meetings when necessary. Remember: the bosses of these departments must be present.

4. Remember to maintain good relationships with people working in the following departments, and eat when it’s time to eat. This will improve efficiency when solving problems. Normally you just need to solve this problem with them on a daily basis.

3. What is the basic process for refined operations to recall users?

Basically, it is similar to the normal process of user operation, complete and specific steps:

1. Study the data and do basic data analysis

Many large platforms actually provide a lot of data. When I was at Ant, I had to find data classmates to check many data dimensions one by one. Basically, you need to study all the pages and eventually find the data that is closely related to your KPI, especially the data related to daily operations and operations. I prefer to calculate some data manually, it’s up to you. The first thing I do when I come to the company every day is to look at the core data in the data background. Develop a habit. When it comes to recall, we need to study the churn rate, the number of lost users, the effectiveness data of various recall methods, etc. 2. Understand, research and know your users

This is not what many people understand. Analyzing user portrait data and conducting user research are all very basic tasks. For example, research needs to be done both online and offline. I actually only have one more step than the general operation, but it is also the most difficult step, which is to spend a lot of time communicating with real users, online or offline. If I have a completely different understanding of this business, I will increase the frequency. For example, when I was at Ant Fortune, the frequency of my communication with fund companies was 2-3 per week, and sometimes even 10 per week. It's not random chat, all communication is about business and is within my control. 3. Strengthen understanding of business

In addition to using the product, being a guinea pig, and communicating extensively with colleagues, you also need to study business processes and business logic. For example, before I started working in the financial management business, I had never traded stocks. I spent a lot of money to make up for this shortcoming. Later, I was able to make the fund managers listen to me talk about business most of the time. You need to think independently about many business details. 4. Analyze the reasons for loss. This has been mentioned before.

5. Determine business goals

The quarterly, half-year and annual goals must be clearly defined. It is important to learn to break down business goals, such as recalls. The average daily recall volume and the goals for each channel must also be determined. Generally speaking, the number of dismantling targets should not exceed three, and they must be the most critical breakthrough points. 6. Set strategy

Determine the most critical means and strategies to achieve your goals. The principles are: 1) Start with the most effective means; 2) What you are best at or what you can do most easily; 3) Do not exceed three items. 7. Project Schedule

What to do at each stage, what is the goal, what means to use, etc. It can be accurate to weekly. 8. Execution phase

The key is to do detailed work. If you find that a certain method is very effective, you need to make it more extreme to achieve better results. If there is a problem, solve it quickly. If it involves products, you will also need to raise requirements, track requirements, etc. 9. Review and summary

4. What is a lost user? What are some ways to reduce churn?

Lost users refer to those users who have used a product or service but no longer use it due to various reasons such as loss of interest in the product. Reducing churn is actually a way to increase retention rate, which includes the following:

1. Product means, etc., some of which have been mentioned before. When it comes to retention rate, the effect of product means is actually far greater than that of operations.

2. Activity operation, but need to pay attention to a few points:

1) Don’t always do marketing activities. If you think that the purpose of users coming to your app must be to buy things, then you are wrong. Maybe they come by chance or it is their first time. In fact, you can also consider doing some lucky draws, essay competitions (if there is a community), etc.

2) The frequency needs to be controlled. Too frequent usage will tire users out.

3) Combining large and small activities;

3. Content operation. You can make some purchase guides, free-to-play guides, etc. In fact, you can find a lot of KOLs to write the content, or you can do UGC.

4. Community operation. Since I started operating, community has been an essential tool for me, no matter what I do. The logic is to focus on operating some top and mid-level users.

5. We can discuss other methods together. I am not quite sure what functional points and specific operational strategies your project currently has.

Author: Class has something to say

Source: Leileitalk520

Related reading:

How to build user churn warning?

4 ways to prevent user churn!