Imagine that you can acquire users for just a few cents. Sounds like the dream of any growth marketer, right? Now imagine that same worst-case retention scenario, and it quickly sounds like a nightmare.
Whether you’re a construction company, a software startup, or a Fortune 500 company, retention is a key metric for customers, employees, and partners.
Growth marketing is not a silver bullet for retention, but there are definitely some tactics that can help improve it.
Let’s dive in.
growth and product
Inside the company, the growth and product teams need to fit together perfectly. While working at Postmates, I saw firsthand how a well-oiled machine can work together to drive conversion and customer retention. We used to hold weekly meetings between teams to discuss conversion rate trends and customer dependency on growth tools.
I believe the three key areas for growth and product should be:
- Expansion of measurement possibilities
- Landing pages and/or feeds for specific channels
- Testing new products and initiatives
A recurring problem, and a theme that I have seen cause countless startup headaches, is the lack of measurement capability. Accurate measurement of conversion volume is of paramount importance for all companies. Otherwise, efforts become ineffective.
It would also be naive to think that measurement is a set-and-forget task. Measurement should be approached as an ongoing work in progress as channels and the privacy landscape are constantly evolving.
It is essential to constantly analyze the sources that drive growth at a detailed level and at the level of the bottom of the funnel.
Working with the product team on specific development campaigns will help you personalize your initiatives, accurately measure them, and improve your chances of success. Imagine that you have a dedicated funnel for visitors who are new to the network and not re-targeted. Or how about having different landing pages just for influencers? These are just some of the examples of tests that product growth and development teams need to perform.
Whenever the product team launches a new product, feature, or promotion, the growth team should be the first to get their hands on it. All campaigns from the lifecycle and paid customer acquisition groups will be the first point of contact with customers, so it is critical to ensure a rapport between these two teams.
If the Growth and Product Development teams work in sync and prioritize the key areas mentioned above, you will see a huge jump in retention.
When I was working on fleet (or driver) acquisition at Postmates, we moved from budgeting using a simple methodology to measuring channel performance based on LTV and retention. How long did our drivers stay on the platform if they were purchased from Google and not from Facebook?
Credit: techcrunch.com /