Harnessing Data to Reduce User Churn

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Harnessing Data to Reduce User Churn January 2017

2016 Apteligent www.apteligent.com

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AgendaWhere is this data coming from?

How Crashes Impact Churn

mCommerce Example

Andrew LevyCo-Founder & Chief Strategy Officerandrew@apteligent.com@andrewmlevy

2016 Apteligent www.apteligent.com

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About ApteligentData Generated from Tens of Thousands of Apps

Userflow FailureNetwork Services ErrorCrashesSlow apps

Apteligent Data Platform

2016 Apteligent www.apteligent.comAbout ApteligentData Generated from Tens of Thousands of AppsTransaction FailureNetwork Services ErrorCrashesSlow apps

Apteligent Data PlatformOptimize Business ResultGet Ecosystem InsightManage App LifecycleRetention/ChurnDetect IssuesDetermine root causeAssess impactPrioritizeManage releasesMonitor vital signsBenchmarks and trendsCarrier QoSDevice adoptionBespoke analysisEngagementMonetizationData ingestionCorrelationPredictionRecommendation

2016 Apteligent www.apteligent.comHow do you define Retention?Rolling RetentionNth Day RetentionHard ChurnDay-1 Retention: Did they come back the next day?Churn is the inverse of a type of retention (closer to rolling retention)CohortsApp Loads + Crash onlyThis report did not yet look at first time users

2016 Apteligent www.apteligent.comMost people will just say retention and churn vs rolling retention5

Relationship Between App Loads and Crashes : Churn

2016 Apteligent www.apteligent.comPer User Crash Rate70% OF USERS THAT HAVE A CRASH EXPERIENCE ONE EVERY OTHER TIME THEY LOAD THE APP

2016 Apteligent www.apteligent.comPoor Performance Drives a Huge Increase in Churn

Crashes increase churn by as much as 534%

Users are up to 8x less likely to return the next day after a crash

Revenue critical App Store categories like Shopping and Finance are very susceptible

2016 Apteligent www.apteligent.comApp Store Categories Behave DifferentlyRevenue Critical Categories At the TopRolling Retention (hard churn)Nth Day Retention (return next day)

2016 Apteligent www.apteligent.comRolling Retention vs N-Day RetentionCrashes Have Immediate Engagement Impact and Negative Long Term Impact on Churn

2016 Apteligent www.apteligent.comThe Nth day retention model (the teal fitted line) has a steeper slope, which means churn rate increases more rapidly as the per-user crash rate increases. This makes sense intuitively; users are less likely to come back the very next day if the app isnt working correctly. However, they may try the app again in the coming weeks which would decrease the churn rate (and slope of the fitted line) which we see in the rolling retention analysis.10

Example mCommerce ScenarioIt is much more expensive to acquire a new user than to retain an existing user, anywhere from 5x to 25x

Customer acquisition cost is $50 x 600 means $30,000 just to win back another 600Assume $300 LTV, you just lost $180,000 in future revenueIf you had a goal to gain 300 customers, and youve lost 600, youve just tripled your customer acquisition cost to reach that goalQuickly isolated the issue, spent X hours of an engineers time (and $Y dollars, much less than the numbers outlined above)A crash just caused your app to lose 600 customers

2016 Apteligent www.apteligent.comDon't Let Your Apps Crash & ChurnQuestions?Feel free to contact me:andrew@apteligent.com

2016 Apteligent www.apteligent.com

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