The Evil of all Evils: Churn

 

Image via Think with Google

Image via Think with Google

The ultimate metric for engagement is daily use if your product is a daily use or a specific range of engagement if not. In other words the measurement of engagement needs to include  the likelihood of your customer to become an ex-customer.

Social psychologist say that habits are hard to form and when creating new products you are creating new habits that, of course we aim to do as quickly as possible. So, how do we create the good habit of retaining our customers?

In Alistair Croll and Benjamin Yoskovitz book  “Lean analytics” there are some examples which prove how important is when you bring an early version of a product to the market to look where it has the highest engagement rate among your customers.: Expensify, Balsamiq, Evernote.  

For instance Evernote has reported that only 1% of the 40 million users convert into paying customers, and the management seems to be ok with this rate however the creators initially hoped to be used on a daily basis. One lesson they learned was that users take months and even yers to become paying customers. In other words for some products conversion should’t be the main concern.

Some applications are to be used daily only by a specific type of users as it is a traveling sales for  Expensify or an Ui designer for Balsamiq.

But, there are some applications that are not meant to be used on a daily basis still the importance of understanding your customer behaviour remains critical. So, metrics like visit frequency might not mean too much for a product but more important can be to understand the behaviour of the users while inside your app, what are they doing inside of it, are there features used more often than others?or why are they abandon you?

In any way, abandonment needs to be consistently tracked, analysed,  and in the same time  you need to optimise your app for improved app store rankings.

Studies shows that every second of interaction with your app counts for users. 

Even minor issues with an app or a website can have a significant impact on the success or failure of a brand. Actually, 60% of people have deleted an app or abandoned a website after just one attempt to use it, if there were problems with performance, and a total of 80% will eventually delete an app if problems continue. 

This abandonment rate impacts not only products but also the digital transformations that many companies are doing.

Wishing you best of luck and knowledgeability in retaining your clients we would be glad to offer you some  details about our product and how we could help you know better your customers!

Yours,

FeedbackStreet

 

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