5 Tips for Hacking Retention
We always mention AARRR metrics when we are talking about growth hacking. Each of them is important, however, in this post we will focus on retention since the growth hacks will be valuable if the retention is high.
Retention shows how many of your customers stick around. The opposite of it is customer churn. We would like to increase the retention where we have a low churn rate. If churn is high your growth funnel will be like a leaky bucket. It doesn’t matter how many customers you acquire when your customers are churning. Hence, you should focus on retention to achieve your growth goals.
Let’s dig in and explore the ways of retaining customers.
Tip #1: Test your funnel before putting more effort into getting traffic
Creating a funnel is important, however, you need to take into account that nowadays customers are not following a linear funnel. Besides, testing the methods that you have tried to acquire new customers is vital for avoiding the leaky bucket problem. Try to use a single method and see if your activation and retention plans are working.
Tip #2: Accelerate “Aha Moment”
Aha moment is important to keep the visitors engaged. If you speed up this process you can convert these visitors to the users. To achieve this goal, define your product’s aha moment and actions that the visitors need to take. Then, try to decrease the necessary time to reach out to aha moment.
Tip #3: Keep your customers updated with emails
Keep calm and prepare an email marketing campaign, email is still alive unless you use it wisely. You can create a drip campaign or product-based update emails depend on your goal and product. Keep in mind that the main aim is retaining the customers.
Tip #4: Get feedback from customers
Feedback is the best output that you can get from your customers to improve your product. If your business is big it is difficult to talk directly with every customer, hopefully, there are numerous solutions out there to ask for feedback (such as SurveyMonkey, Google Forms). It’s helpful to understand if your customers are happy with your product and the reasons if they are unsatisfied.
Tip #5: Activation and Retention are close friends
Time to time you may use the same methods for activation and retention. For instance, emails are great for both activate and retain a user. Let’s talk with an example: you have an online store that you sell high-quality technology products like Bluetooth speakers. Since you are selling expensive products your customers may need more time to buy a product. If you observe that a new customer buys a product in 7 days on average, you can take this time as activation period. During a week, you can use emails to activate customers. You can offer coupon codes, show different products etc. After a week, the retention period will start, and you will try to get these customers back to your site and buy more product. In that case, the way of communication should be different. First of all, you need to determine when you will contact them and what you will mention. You can choose to reach out to them at day 14 and show them complementary products or the products on sale.
Each business has different retention periods
Depends on your business your retention period may differ. Here is an example: you are monthly publishing an online magazine. You will have subscribers and one time only customers. Your aim is targeting this one time only customers to convert them to subscribers and prevent churn building customer loyalty. So, you need to have two different communication methods. One is for assuring customer loyalty where you update your customers and ask for feedback and the other is for retaining. You may prefer to send an email or notification once a month to subscribers where you send a notification every two weeks to one time only customers.
In short, you need to decide your retention periods and strategy based on your business type and goals.