Growth marketers, take heed! Acquiring users for just a few cents might sound like a dream come true, but it quickly turns into a nightmare when paired with the worst retention rate possible. Whether you’re a construction company, software startup, or Fortune 500 entity, retention is a key metric across customers, employees, and partners.
Growth and Product: A Harmonious Union
The growth and product teams should work in tandem like a well-oiled machine. I’ve witnessed firsthand how this collaboration can tackle customer conversion and retention at Postmates. We held weekly meetings between teams to address conversion rate trends and customer stickiness between growth media.
For growth and product teams to excel, there are three key foci:
1. Enhancing Measurement Capabilities
Measuring conversion volume accurately is paramount for all companies. Otherwise, efforts become inefficient. It would be naive to think that measurement is a set-it-and-forget type of task. Measurement should be approached as a constant work-in-progress, as channels and the privacy landscape are constantly evolving.
2. Channel-Specific Landing Pages and/or Flows
Working in step with the product team on specific growth campaigns will help you personalize initiatives, measure them accurately, and increase the chances of success. Imagine having a specific funnel for visitors who are net-new versus re-targeted. Or, how about having different landing pages just for influencers? These are just a few examples.
3. Evolving Communication Style
Make sure to evolve your style of communication, using responses from users to gain further clarity on why they were churning, and the types of offers that would bring them back. This will not only improve retention but also enhance all growth marketing efforts.
Happiness Score: The Key to Retention
At the most basic level, if the product or service your startup offers makes people feel good, happy, and gives them a sense of value, they’ll stick around. And they’ll exude that happiness by recommending your product or service to friends and family.
Make sure you’re constantly getting feedback from users who love your product as well as those who didn’t stick around, because each will provide tremendous insight. Having a constant pulse on feedback will improve retention and help enhance all growth marketing efforts more than anything.
Tools for Combating Churn
There are thousands of tools to help combat churn. I would highly recommend doing research on the ones that apply to your startup.
Conclusion: The Importance of Retention
If you believe that happiness is a reason people stick around in relationships (including between users and products), you’re on the right track to solving retention. Don’t overlook this crucial aspect, as it will make all the difference in acquiring users for a few cents.
Related Topics
- Brand management
- Customer acquisition cost
- Customer experience
- Customer relationship management
- EC Column
- Growth marketing
- Marketing
- Media & Entertainment
- Product marketing
- Startups
- Verified Experts
