By Ajit Singh
The great Peter Drucker once said that marketing has two purposes: to create and keep customers.
For digital products, such as SaaS platforms and apps, the latter is key. Yet many marketers are so focused on user acquisition they forget about retention.
According to a Harvard research, just a 5% increase in customer retention can boost profits by 25% to 95%.
In this article, I’m going to share seven user retention techniques to keep your customers loyal and sticky.
1. Use customer intelligence from your user data
Your current user base and their behaviors is a treasure trove of data. And this data can be turned into insight for better retention.
According to an MIT Technology Review study, businesses only use 0.5% of the data they collect. While this statistic can seem troubling on the surface, it presents a huge opportunity.
Customer analytics can act as a compass for your retention strategy. For example, you may find that a large percentage of users get stuck at a certain stage during the onboarding process.
With this insight, you can create content that teaches users how to overcome this hurdle at the moment they’re most likely to get stuck. Not only will this educate, but open up a conversation you can get involved with.
Analyze user behavior to assist users and discover your biggest “aha!” moments. Create content that help your users get there. The rest of this guide will show you how.
Use a customer analytics tool to begin collecting data on your users. Take this behavioral data and create user segments. Use these segments to drive your retention efforts and focus on the behaviors that present most opportunity.
Customer intelligence can optimize all areas of the business. But the lowest hanging fruit sits in your user retention strategy. Use it to assist users and educate them on key areas of your product.
2. Dig deep with customer development
Data can provide huge amounts of quantitative insight. While invaluable, this only gives you a top-level view of customer issues.
Customer development is the process of having regular interviews with your customers. It requires asking them the right questions, digging deep to discover their true pains, problems, and desires.
From a marketing perspective, it can be a huge eye-opener in terms of content marketing and user retention.
Start by reaching out to your best customers. These are your top 10% of users that have a high net promoter score (NPS). They can give you the insight to understand what hooked them into your product in the first place.
Dig as deep as possible. If they tell you they signed up because of your customer service, ask them what they love most about it.
Perhaps they get most value from a particular feature. What problem does it solve for them? What did they do before they signed up?
Alex Turnbull, CEO of Groove, used this methodology to talk to 500 of his customers. He learned that customers were asking for features they already had, learned more about his personas and listened to the language that helped Go to the full article.
Source:: Business 2 Community