localytics - predictive retention strategy

P R E D I C T I V E R E T E N T I O N S T RAT E GY

90% of app users are around for

30 days and then never come back.- Andrew Chen

Growth @Uber

3

The Churn Problem trumps the logic of traditional segmentation and targeting…

…once you’ve observed a user to churn, it’s already too late.

4

Delivery Hero beat churn by getting ahead of the problem.

RESULT: > 11% increase in retention in first 30 days

About:

- Takeaway and food delivery platform

- 2,000 Employees - 34 international markets- 10 million monthly orders- $3.1 billion valuation (June

2015)

5

By identifying risky behavior early in theuser lifecycle…Discovering the ‘aha!’ moments that lead to true product adoption

• 7+ friends in any given user’s first 10 days

For Delivery Hero…

- Users who performed 1+ Checkout Success Events in their first 14 days were 16% more likely to churn; and

- Users who performed 3+ Restaurant Tapped events in their first 3 days were 13% more likely to churn

- Chamath Palihapitiya Growth @ Facebook

6

…to segment and communicate with churn risk users. - Predictively segment which users

are at-risk of churn

- As users become flagged for churn risk, put them on a ‘happy path’ towards retention

- Sequence of touch points optimized towards maximizing ROI

A B

While testing, measuring, and automating for personalization at scale.

To drive impact on the bottom line.

RESULT: 11% lift in purchase retention in Month 1

“We’ve been wondering what are the early indicators

of churn, and how to leverage that info to retain

more of our hard-won customers.”- Erik Kubik

Marketing @Delivery Hero

No Targeting Behavioral Targeting Behavioral and User Profile Targeting

Behavioral, User Profile, & Predictive Targeting

0%

5%

10%

15%

20%

25%

30%

We’ve observed that granular, multi-factor targeting has an

immediate, material impact on retention across a range of

app sizes, categories, and business models.

+190% +250%

+440%

7-D

ay

Rete

ntio

n %