localytics - predictive retention strategy
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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
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The Churn Problem trumps the logic of traditional segmentation and targeting…
…once you’ve observed a user to churn, it’s already too late.
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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)
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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
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…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%
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Rete
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