Customer Retention and On-demand Markets

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11

Jessy Hanley (Director of US Marketing at Intuit - TurboTax, QuickBooks, and Mint) has led marketing and retention roles at Uber and Wag, and she's now leading similar efforts at a multi-billion-dollar global brand.

Source:
Customer Retention and On-demand Markets
(no direct link to watch/listen)
(direct link to watch/listen)
Type:
Webinar
Publication date:
March 15, 2020
Added to the Vault on:
March 26, 2020
These insights were shared through the free Growth Gems newsletter.
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💎 #
1

Regarding messaging for different segments, start with a "one size fits all" approach and see how each segment behaves. Look for outlier segments that are not responding well and create a strategy to address these particular segments. 

09:10
💎 #
2

To deal with how segments evolve, never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.). 

10:35
💎 #
3

If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction). 

12:05
💎 #
4

The GREAT lifecycle approach:
- Greet (welcome, value props)
- Ramp (help overcome barriers to entry)
- Evolve (expand understanding)
- Amplify (deepen relationship)
- Treasure (make feel valued)

15:15
💎 #
5

Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in. 

16:52
💎 #
6

Your happy path is the path you ideally would have every single customers move through the lifecycle. Look at the users that are doing things successfully and use that to get people to the next action. 

20:02
💎 #
7

Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers".  

26:57
💎 #
8

You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned. 

31:12
💎 #
9

It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition. 

32:05
💎 #
10

Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly. 

33:47
💎 #
11

It is not just about dollars spent: sometimes it is actions and depth of relationship. 

38:54
The "gems" from this resource are only available to premium members.
  • Unlock access to gems from over 130 mobile growth resources
  • Define your preferred categories and receive new relevant gems directly in your inbox
  • Discuss key insights (and any other mobile growth topic) in the members-only community.
Upgrade Your Plan
💎 #
1

Regarding messaging for different segments, start with a "one size fits all" approach and see how each segment behaves. Look for outlier segments that are not responding well and create a strategy to address these particular segments. 

09:10
💎 #
2

To deal with how segments evolve, never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.). 

10:35
💎 #
3

If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction). 

12:05
💎 #
4

The GREAT lifecycle approach:
- Greet (welcome, value props)
- Ramp (help overcome barriers to entry)
- Evolve (expand understanding)
- Amplify (deepen relationship)
- Treasure (make feel valued)

15:15
💎 #
5

Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in. 

16:52
💎 #
6

Your happy path is the path you ideally would have every single customers move through the lifecycle. Look at the users that are doing things successfully and use that to get people to the next action. 

20:02
💎 #
7

Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers".  

26:57
💎 #
8

You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned. 

31:12
💎 #
9

It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition. 

32:05
💎 #
10

Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly. 

33:47
💎 #
11

It is not just about dollars spent: sometimes it is actions and depth of relationship. 

38:54
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💎 #
1

Regarding messaging for different segments, start with a "one size fits all" approach and see how each segment behaves. Look for outlier segments that are not responding well and create a strategy to address these particular segments. 

09:10
💎 #
2

To deal with how segments evolve, never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.). 

10:35
💎 #
3

If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction). 

12:05
💎 #
4

The GREAT lifecycle approach:
- Greet (welcome, value props)
- Ramp (help overcome barriers to entry)
- Evolve (expand understanding)
- Amplify (deepen relationship)
- Treasure (make feel valued)

15:15
💎 #
5

Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in. 

16:52
💎 #
6

Your happy path is the path you ideally would have every single customers move through the lifecycle. Look at the users that are doing things successfully and use that to get people to the next action. 

20:02
💎 #
7

Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers".  

26:57
💎 #
8

You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned. 

31:12
💎 #
9

It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition. 

32:05
💎 #
10

Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly. 

33:47
💎 #
11

It is not just about dollars spent: sometimes it is actions and depth of relationship. 

38:54
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Notes for this resource are currently being transferred and will be available soon.

Jessy was previously at Wag and Uber.


Why retention?

It's about thinking about the entire customer journey and making everyone feel responsible and accountable for retention. Product, customer support, community, marketing, etc. have to be involved.


Your money goes so much further if you're looking at the entire journey.


Thinking about retention as a relationship: how do you deepen people's relationship with you over time. Which activities do you want them to do to move them through the customer journey.


There is not 1 user journey, only individualized journeys. However start with 1 path and then iterate to get to the point where you have a 1:1 relationship with users.


Good north star metric for on-demand services

Depends on the organization because if you already have early adopters then they will have higher retention rates vs. new users your acquire. You should be striving to always improve your retention but you also need to make sure you keep retention high for your tenured customers.


Segmentation

Try to stick around about 6 main segments. But it doesn't mean you have to make 6 versions of everything because several segments might behave the same way.


  1. Create your segments, "socialize" them around the organization so everybody understands who these users are.
  2. When rolling out new tests/hypothesis, start with "one size fits all" .
  3. [💎@09:10] See how each segment behaves and look for outlier segments that are not responding well and create a strategy to address these particular segments.


How to handle how segments evolve

[💎@10:35] Never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.).


[💎@12:05] If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction).


When you are dealing with retention, the customer's retention and time is your budget. How do you want to spend that?


You have to think about where someone is in the lifecycle journey.


RFM (Recency Frequency Monetization) framework

Great place to start but it's the next level that really helps you.


[💎@15:15] The GREAT lifecycle approach:

  • Greet - welcome them and explaining the main value props  
  • Ramp - help them overcome the barriers to entry (sign up for a trial, first purchase, upload documents, etc.)
  • Evolve - expand their understanding of the product because a lot of customers actually do not understand your product
  • Amplify - deepen the relationship
  • Treasure - make sure they are feeling valued and continuing to get what they need out of the product


[💎@16:52] Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in.


Churn happens through every single step of the lifecycle.


Shaping the "happy path" for customers

You can consider there are "heart metrics" and "head metrics".


[💎@20:02] Your happy path is the path you ideally would have every single customers move through the lifecycle:

  • Look at those that are successful (e.g. Greet → Ramp): what are the steps, what do they do, etc.
  • Use that to get people to get to that next action.


The unhappy path: for users that are not taking that happy path, you educate further on the activities of the stage they are at. If this doesn't work, you can offboard them to another product (e.g. Uber → Uber Eats).


Magnetic brands

Magnetic brands are 4.5 times more likely to make people more happy when they hear about it. 94% of magnetic brands get word of mouth marketing.


There is a lot you can do to become a magnetic brand. It's about making everyone you are communicating with feel like you are on their side of the table. I'm here to help you get the most of the product, enjoying the experience, etc.


[💎@26:57] Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers". It's giving something back and using the information that you have to give it a personalized feeling.

Google does something like that with Nest.


Cost to acquire high-quality users

Once you already have people that had already shown interest, it gets harder to acquire new users.


[💎@31:12] You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned.


[💎@32:05] It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition.


Discount sensitivity model

[💎@33:47] Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly.


Always monitor to see if you are getting diminishing returns from your segments.


Next best action

  1. Look at all the actions a rider could take: book a black car trip, trusted contact, pre-book a trip to the airport.
  2. Assign an LTV value to that action.
  3. Create lookalike models for each of these actions to create a journey allowing to define the next best action to do based on what they have done.


[💎@38:54] It is not just about dollars spent: sometimes it is actions and depth of relationship.


It helps users feel like it is personalized.


The notes from this resource are only available to premium members.
↘ At this point, you know what to do ↙
Upgrade Your Plan

Jessy was previously at Wag and Uber.


Why retention?

It's about thinking about the entire customer journey and making everyone feel responsible and accountable for retention. Product, customer support, community, marketing, etc. have to be involved.


Your money goes so much further if you're looking at the entire journey.


Thinking about retention as a relationship: how do you deepen people's relationship with you over time. Which activities do you want them to do to move them through the customer journey.


There is not 1 user journey, only individualized journeys. However start with 1 path and then iterate to get to the point where you have a 1:1 relationship with users.


Good north star metric for on-demand services

Depends on the organization because if you already have early adopters then they will have higher retention rates vs. new users your acquire. You should be striving to always improve your retention but you also need to make sure you keep retention high for your tenured customers.


Segmentation

Try to stick around about 6 main segments. But it doesn't mean you have to make 6 versions of everything because several segments might behave the same way.


  1. Create your segments, "socialize" them around the organization so everybody understands who these users are.
  2. When rolling out new tests/hypothesis, start with "one size fits all" .
  3. [💎@09:10] See how each segment behaves and look for outlier segments that are not responding well and create a strategy to address these particular segments.


How to handle how segments evolve

[💎@10:35] Never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.).


[💎@12:05] If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction).


When you are dealing with retention, the customer's retention and time is your budget. How do you want to spend that?


You have to think about where someone is in the lifecycle journey.


RFM (Recency Frequency Monetization) framework

Great place to start but it's the next level that really helps you.


[💎@15:15] The GREAT lifecycle approach:

  • Greet - welcome them and explaining the main value props  
  • Ramp - help them overcome the barriers to entry (sign up for a trial, first purchase, upload documents, etc.)
  • Evolve - expand their understanding of the product because a lot of customers actually do not understand your product
  • Amplify - deepen the relationship
  • Treasure - make sure they are feeling valued and continuing to get what they need out of the product


[💎@16:52] Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in.


Churn happens through every single step of the lifecycle.


Shaping the "happy path" for customers

You can consider there are "heart metrics" and "head metrics".


[💎@20:02] Your happy path is the path you ideally would have every single customers move through the lifecycle:

  • Look at those that are successful (e.g. Greet → Ramp): what are the steps, what do they do, etc.
  • Use that to get people to get to that next action.


The unhappy path: for users that are not taking that happy path, you educate further on the activities of the stage they are at. If this doesn't work, you can offboard them to another product (e.g. Uber → Uber Eats).


Magnetic brands

Magnetic brands are 4.5 times more likely to make people more happy when they hear about it. 94% of magnetic brands get word of mouth marketing.


There is a lot you can do to become a magnetic brand. It's about making everyone you are communicating with feel like you are on their side of the table. I'm here to help you get the most of the product, enjoying the experience, etc.


[💎@26:57] Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers". It's giving something back and using the information that you have to give it a personalized feeling.

Google does something like that with Nest.


Cost to acquire high-quality users

Once you already have people that had already shown interest, it gets harder to acquire new users.


[💎@31:12] You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned.


[💎@32:05] It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition.


Discount sensitivity model

[💎@33:47] Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly.


Always monitor to see if you are getting diminishing returns from your segments.


Next best action

  1. Look at all the actions a rider could take: book a black car trip, trusted contact, pre-book a trip to the airport.
  2. Assign an LTV value to that action.
  3. Create lookalike models for each of these actions to create a journey allowing to define the next best action to do based on what they have done.


[💎@38:54] It is not just about dollars spent: sometimes it is actions and depth of relationship.


It helps users feel like it is personalized.


The notes from this resource are only available to premium members.

The detailed notes taken for a resource are an easy way to see the gems in context to get a better understanding. They also include any relevant visuals from the source.
↘ At this point, you know what to do ↙
Request Access

Jessy was previously at Wag and Uber.


Why retention?

It's about thinking about the entire customer journey and making everyone feel responsible and accountable for retention. Product, customer support, community, marketing, etc. have to be involved.


Your money goes so much further if you're looking at the entire journey.


Thinking about retention as a relationship: how do you deepen people's relationship with you over time. Which activities do you want them to do to move them through the customer journey.


There is not 1 user journey, only individualized journeys. However start with 1 path and then iterate to get to the point where you have a 1:1 relationship with users.


Good north star metric for on-demand services

Depends on the organization because if you already have early adopters then they will have higher retention rates vs. new users your acquire. You should be striving to always improve your retention but you also need to make sure you keep retention high for your tenured customers.


Segmentation

Try to stick around about 6 main segments. But it doesn't mean you have to make 6 versions of everything because several segments might behave the same way.


  1. Create your segments, "socialize" them around the organization so everybody understands who these users are.
  2. When rolling out new tests/hypothesis, start with "one size fits all" .
  3. [💎@09:10] See how each segment behaves and look for outlier segments that are not responding well and create a strategy to address these particular segments.


How to handle how segments evolve

[💎@10:35] Never "set and forget" anything. Always have filters that allow you to see how each individual segment is performing for new initiatives (promotions, new features, etc.).


[💎@12:05] If at all possible, use ML to attribute users to segments. If not, use progressive profiling where you ask 1 question every session (to not create too much friction).


When you are dealing with retention, the customer's retention and time is your budget. How do you want to spend that?


You have to think about where someone is in the lifecycle journey.


RFM (Recency Frequency Monetization) framework

Great place to start but it's the next level that really helps you.


[💎@15:15] The GREAT lifecycle approach:

  • Greet - welcome them and explaining the main value props  
  • Ramp - help them overcome the barriers to entry (sign up for a trial, first purchase, upload documents, etc.)
  • Evolve - expand their understanding of the product because a lot of customers actually do not understand your product
  • Amplify - deepen the relationship
  • Treasure - make sure they are feeling valued and continuing to get what they need out of the product


[💎@16:52] Take each of these milestones and understand the average and median amount of time it takes for each milestone. That's how you know when to push them to the next thing, but in the meantime you focus your energy on getting them to understand the phase they are in.


Churn happens through every single step of the lifecycle.


Shaping the "happy path" for customers

You can consider there are "heart metrics" and "head metrics".


[💎@20:02] Your happy path is the path you ideally would have every single customers move through the lifecycle:

  • Look at those that are successful (e.g. Greet → Ramp): what are the steps, what do they do, etc.
  • Use that to get people to get to that next action.


The unhappy path: for users that are not taking that happy path, you educate further on the activities of the stage they are at. If this doesn't work, you can offboard them to another product (e.g. Uber → Uber Eats).


Magnetic brands

Magnetic brands are 4.5 times more likely to make people more happy when they hear about it. 94% of magnetic brands get word of mouth marketing.


There is a lot you can do to become a magnetic brand. It's about making everyone you are communicating with feel like you are on their side of the table. I'm here to help you get the most of the product, enjoying the experience, etc.


[💎@26:57] Give people back their data in context. The most successful retention campaigns have that concept. Example: "you took X number of trips this month, that's X% more than usual and Y% more than before other customers". It's giving something back and using the information that you have to give it a personalized feeling.

Google does something like that with Nest.


Cost to acquire high-quality users

Once you already have people that had already shown interest, it gets harder to acquire new users.


[💎@31:12] You can win back customers much less expensively than you can acquire news customers. However make sure you do not drop them back in the same experience they dropped out off. Address the reasons of why they churned.


[💎@32:05] It costs about 25% less to bring back someone (when you are thoughtful) vs. getting new ones. Target them specifically (can be with incentives), test messages first with your own channels (push, email, SMS) and then use that for your paid (re)acquisition.


Discount sensitivity model

[💎@33:47] Look at which customers have made purchases and how discounted these purchases where so you can establish if they have low discount sensitivity vs. high discount sensitivity and assign discounts accordingly.


Always monitor to see if you are getting diminishing returns from your segments.


Next best action

  1. Look at all the actions a rider could take: book a black car trip, trusted contact, pre-book a trip to the airport.
  2. Assign an LTV value to that action.
  3. Create lookalike models for each of these actions to create a journey allowing to define the next best action to do based on what they have done.


[💎@38:54] It is not just about dollars spent: sometimes it is actions and depth of relationship.


It helps users feel like it is personalized.