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I’ve had my Spotify since June 2011 and Netflix since 2010.
The retention of these companies is what makes them so valuable.
Growth can be an art, but retention is a science and not talked about enough.
Here’s what you can learn on scaling your customer base with retention.
The retention of these companies is what makes them so valuable.
Growth can be an art, but retention is a science and not talked about enough.
Here’s what you can learn on scaling your customer base with retention.
When a company is getting started they’ll do just about anything to grow.
Some call it growth hacking and others say “do things that don’t scale”.
Creativity and hustle is a huge factor for success early.
Here is a great example from @MorningBrew https://twitter.com/austin_rief/status/1337759196864008192
Some call it growth hacking and others say “do things that don’t scale”.
Creativity and hustle is a huge factor for success early.
Here is a great example from @MorningBrew https://twitter.com/austin_rief/status/1337759196864008192
Growth is critically important.
However, it’s not the best measurement.
Why? Too many ways to fake it.
EX: Unprofitable CAC, active vs dormant users, low value vs high value.
Retention is king.
Here’s a great chart from @GreylockVC showing the impact of great retention.
However, it’s not the best measurement.
Why? Too many ways to fake it.
EX: Unprofitable CAC, active vs dormant users, low value vs high value.
Retention is king.
Here’s a great chart from @GreylockVC showing the impact of great retention.
As you start to gain new customers and approaching product market fit, the next step is learning how engaged a customer is.
This is where most fall short and get stuck.
You need to get a baseline of cohort retention and create a process to measure this.
This is where most fall short and get stuck.
You need to get a baseline of cohort retention and create a process to measure this.
This gives you the ability to test design, triggers, and rewards for users.
Many co’s have a good product and solving a real problem, but plateau because they avoid this.
Netflix tests everything and is world class at executing towards optimizing for user engagement.
Many co’s have a good product and solving a real problem, but plateau because they avoid this.
Netflix tests everything and is world class at executing towards optimizing for user engagement.
Netflix ensures changes are not driven by the most vocal employees, but instead by data, allowing their members to guide the experiences they love.
EX: an A/B image for a movie can increase engagement by 30%
Your instincts are critical but your customers action is a trump card.
EX: an A/B image for a movie can increase engagement by 30%
Your instincts are critical but your customers action is a trump card.
Once you understand retention, the next step is hooking your user in by their actions.
Meaning, the more they put in, the more they get out of it.
Spotify has done this extremely well.
Meaning, the more they put in, the more they get out of it.
Spotify has done this extremely well.
Spotify has all of my playlists and knows my listening habits.
I don’t want to leave because all my stuff is there. Too much work to leave.
They also reward my behavior with great recommendations and the end of year wrap up.
The more I use it the more I love it.
I don’t want to leave because all my stuff is there. Too much work to leave.
They also reward my behavior with great recommendations and the end of year wrap up.
The more I use it the more I love it.
If you’re building a company, worry about growing and solving a real problem.
If you’re past that, focus on churn. If you lower your churn, you’re increasing your growth.
Lastly, reward your customers for their actions. Make them never want to leave, like Spotify and Netflix.
If you’re past that, focus on churn. If you lower your churn, you’re increasing your growth.
Lastly, reward your customers for their actions. Make them never want to leave, like Spotify and Netflix.
