Personalization has long been a hot topic in the app world, especially given its significant impact on customer retention and revenue.  

In our latest fireside chat, Said Aliansyah Ramadika Idroes, the Brand Executive at OVO, a financial tech company that consolidates financial products such as investments, insurance, and payments into a single app, gives us a glimpse into how OVO develops personalized experiences for users and how this has impacted business. 

While ‘batch and blast’ methods of messaging can help apps bring in more brand awareness, this typically doesn’t lead to increased revenue.  To create personalized campaigns and content, OVO uses behavioral patterns, A/B testing, data, and technology to drive retention and revenue to yield gains of over 10%.

Behavior-based personalized experiences

For OVO, it’s of the utmost importance to engage their customers throughout their lifecycle journey and provide the greatest value.  

By personalizing three critical aspects of the user experience, targeted messaging, rewards, and segmentation, OVO has seen 10-15% increases in conversion and revenue.  

With no two users alike, and each customer requiring different things from their product, OVO relies on a more advanced form of personalization that goes beyond segmentation by static elements and, instead, uses the customer’s behavioral interaction within the app.  

By personalizing the user experience to their level of interaction with your app, you avoid a few common pitfalls.  Your customers won’t get an inbox cluttered with too many irrelevant notifications, and idle and active users never get the same content.  

Leveraging your data and tech stack 

To achieve this level of customization, having the right tools, technology, and integrations is integral to ensuring you push messages to the right user segment. So, your customers only see the most helpful content at the right time.

The first step to curating the best content for your users is to understand them and their needs thoroughly. The ability to combine front and back-end data gives you just that kind of deep insight. 

Mobile marketing platforms can produce events parameters and other front-end data. Combining this with back-end data, including user behavior, preferences, and transaction history, helps identify the most loyal users and which aspects your app users enjoy the most.   

You want to get data into your platform to process and send back in real-time. However, this is easier said than done. Because you’re getting data from multiple sources, the challenge lies in finding a way to remove the data silos and align the different systems so that they can speak to one another. 

The solution: developing vertical integrations that are scalable. This includes running variable A/B tests and different campaign customizations, such as app inbox images and banners. This way, you can pair the users with the right rewards and products and send communication just when they need it — and before they churn.

Future-proof your app’s success with personalized experiences

Building awareness is easy, but retaining users is key to long-term success.  

To maximize customer retention, app businesses must prioritize personalization and segmentation.  

Streamline your data engines, consolidate and remove any data silos, and integrate your systems so that you can personalize messaging and segmentation throughout the different user journeys, differentiating your power users from those who may need more nudges.

The ability to send the right messages at the right time through personalized content boosts campaign engagement and conversion rates, retention, and, ultimately, revenue to help your business scale and grow well into the future.

Excited to learn more?  We’ve got you covered.

• Get more insights into how OVO uses their tech stack, including Leanplum, for personalizing the app experience in the complete fireside chat recording.
• Learn more about the personalization journey and ways to apply it to your app with The Impact of Personalization Within App Experiences.
• Explore data-based insights into personalized messaging using our Subscription App Data Science Report.
• Get an inside peek at how you can leverage the Leanplum platform to personalize your app messaging and experiences by taking our Product Tour.
• See Leanplum in action with a complimentary personalized Product Demo.

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For app-first companies, Leanplum is the only solution that helps personalize and optimize all customer touchpoints, both inside and outside the app. Leanplum combines multi-channel Lifecycle Marketing with the ability to A/B test the Product Experience for complete, end-to-end personalization of the mobile journey. Break down organizational silos and eliminate point solutions to enable rapid growth.

The post Beyond Batch and Blast: Maximize Revenue and Retention Through User Behavior and Segmentation appeared first on Leanplum a CleverTap Company.

As we discussed in the webinar, the trend towards greater user privacy is making user acquisition more expensive and less reliable. That doesn’t mean organizations should discontinue user acquisition activities, of course. But it does mean that once you’ve acquired a customer, there must be a greater emphasis on realizing a return on the acquisition costs and on retaining the customer for as long as possible.

As we all know, the key to customer monetization and retention is in creating delightful and worthwhile experiences, in whatever form that might take in your business. Simply put, treat the customer well and you will be rewarded with her business and she might tell a bunch of her friends … which in turn can help with those user acquisition challenges.

Nowhere is this more clearly evident than in the Data Science Report our internal analysis team produced last year. In this report, which spans 1,800 campaigns and 670 million messages of actual customer results, the benefits of applying user behaviors and personalized messaging is clear:

A good example of behavioral-based user retention was discussed in our recent webinar with Andre Cohen at Titling Point. Andre explained that users don’t tend to suddenly cease use of an app. Instead, usage slows down, until eventually stopping altogether. Identifying and acting upon the early stages of a user’s declining usage can be vital to retaining that user.

But that’s easier said than done, since most engagement platforms lack the advanced segmentation capabilities needed to identify the declining usage scenario. For instance, let’s take almost any subscription-based app or free-to-play mobile game, where routine usage of the app is a direct measure of the value the user is receiving. Detecting declining usage requires a segment definition that spans (at least) two time frames – one that captures a baseline for app usage and a more recent one that identifies a consequence reduction from the baseline. In Leanplum, that segment definition might look like this:

In this example, we’re identifying users that were reading articles on a frequent basis dating back three months ago, but in the most recent two weeks have shown a significant reduction in usage. In other words, done correctly, behavioral-based segmentation can infer a user’s state of mind, which in turn can fuel personalized interactions that steer user sentiment in the right direction.

The overarching point here is that, as marketers, we must rely on and act upon data. And since data is being taken away from our user acquisition activities, it’s easy to understand why many marketers are leaning more heavily on user engagement and retention solutions that have strong data foundations and personalization capabilities.

Want to learn more about what Leanplum can do for your team? Check out these resources:

• For a quick overview, watch our 2-minute Gaming video
• We are the only engagement platform with a focus on Gaming
• Watch the full webinar with MobilityWare, LiveOps on a Shoestring Budget, where we discuss the inner workings of how they use Leanplum for live events
• Explore our Games Data Science Report to see how specific engagement strategies impact retention and revenue
• Read our article on Mobile Gaming 2021: How to Increase Player Engagement and Revenue for more insights on boosting overall engagement and monetization in mobile gaming
• Check out the Product Tour to see Leanplum in action
• Set up a complimentary personalized demo of Leanplum

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For app-first companies, Leanplum is the only solution that helps personalize and optimize all customer touchpoints, both inside and outside the app. Leanplum combines multi-channel Lifecycle Marketing with the ability to A/B test the Product Experience for complete, end-to-end personalization of the mobile journey. Break down organizational silos and eliminate point solutions to enable rapid growth.

The post Leaning into Customer Retention through Behavioral Segmentation appeared first on Leanplum a CleverTap Company.

Retaining loyal customers is sometimes easier said than done, however. So it’s up to brands to ensure that they prioritize retention strategies, and do all they can to exceed the expectations of current customers. Analytical insights often provide all the information brands need to keep improving their customer experience, with calculations like the retention rate formula playing a key role in top retention strategies. 

If you’re new to the retention rate formula, it could be time to find out more. Let’s see how it works.

What is the Retention Rate Formula?

The retention rate formula is a mathematical calculation that brands can use to measure the rate at which they have retained customers over a given period of time. It’s a relatively simple calculation, but it can have some eye-opening results. 

To work out the retention rate, marketers simply need to decide on a specific time frame to be analyzed, and then make a note of a few key metrics. They need to know how many existing customers a brand had at the beginning of the time period being analyzed, how many it had at the end, and how many new customers joined the fold between those two dates. 

The calculation itself is usually written as ((E – N) / S) * 100 = X. E refers to the customers at the end of the time period, N is the number of new customers who joined during this time, and S is the number of customers the brand already had at the start. 

To get the retention rate, it’s just a case of subtracting the number of new customers from the number of customers that were found at the end and dividing that figure by the number of customers the brand already had. The end result is then multiplied by 100 to give the true retention rate. 

Why is Customer Retention so Important for Growth Marketing?

Customer retention is vital in growth marketing because it reveals so much about a brand’s potential and how customer experience improvements could be used to facilitate growth. 

In order to grow organically, a brand must first ensure that it’s providing its customers with a standout experience that makes them likely to come back for more. If customers are left feeling underwhelmed by the service they received, then they’ll soon switch to competitors, and sales will start to slip. 

Customer acquisition is of course a key consideration in any growth marketing strategy, but attracting the attention of a brand new customer is time-consuming and expensive. It’s much easier and more cost-effective for brands to divert their energy into piquing the interest of their existing customers, tempting them back with new products and promotions. 

Companies that channel all their money and energy into acquiring new customers could find that existing customers are slipping away, and they’re left with dwindling customer numbers despite all their acquisition efforts. And that’s why brands need to prioritize retention as well as acquisition in any good growth marketing strategy. 

Best Practices For Maximizing the Retention Rate

There are many changes that brands can make to maximize their retention rate. Tips and tricks like personalization, great use of data, and customer journey improvements can all have a significant impact on the retention rate of a company – and therefore its ability to grow. Take a look at some of the following best practices to start improving your retention rate. 

Optimize the User Journey

Make the most of your data to analyze your user journey in detail. Look out for particular points where your company might be losing the interest of users, and take steps to make improvements where you can. By fully optimizing your user journey, you’ll leave customers satisfied and far more likely to return for another purchase.

Remember Canceled Customers Aren’t Churned Customers

If a customer cancels, they may not be lost forever. Provide feedback forms at the point of cancellation and encourage customers to share their thoughts on how the service could be upgraded. This will open a channel of communication between your customer service team and the customer, which could help to sway their decision back in favor of your brand. And even if it doesn’t, your team will gain some valuable feedback that can be used to inform future customer experience improvements. 

Personalize

Nothing shows a customer that they’re valued by a brand quite like personalization, so use your customer data to make this a possibility. Personalize interactions as much as you can to communicate with existing customers in a more meaningful way. Not only will you be showing them products and services that they’re more likely to be interested in, you’ll also leave them with a great lasting impression of your brand. 

Leverage Your Data 

Data forms the basis of all good retention strategies, so put it to full use. Track the metrics that reveal all there is to know about your customer retention rate and make sure that important metrics are continuously monitored and analyzed. Start testing different user journey improvements to see how they might affect retention to check that you’re doing all you can to optimize the journey in a way that ensures customers return. 

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The retention rate formula offers a quick and simple way to calculate the real retention rate of a brand, helping companies to understand how retention rates may be changing over time. This is crucial if a brand is taking steps to improve customer retention, as it will quickly show whether changes are proving effective, or whether more needs to be done to stop customers from leaving. By managing data well, and keeping a keen eye on customer retention rates, brands stand a far better chance of reaching their true potential. 

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For app-first companies, Leanplum is the only solution that helps personalize and optimize all customer touchpoints, both inside and outside the app. Leanplum combines multi-channel Lifecycle Marketing with the ability to A/B test the Product Experience for complete, end-to-end personalization of the mobile journey. Break down organizational silos and eliminate point solutions to enable rapid growth.

The post Your Guide to The Retention Rate Formula appeared first on Leanplum a CleverTap Company.