The Ultimate Growth Guide 1: Overview
The Ultimate Growth Guide 2: An Introduction to Retention and Activation
Target audience for the guide
This guide is intended for:
Business managers who want to increase their company's EC sales
Product managers who want to increase their SaaS MRR/ARR
Marketing managers who want to increase the number of users of their social apps
Managers facing the above challenges
The place of habit formation in the activation process
The activation process consists of the following elements:
Success hypothesis construction
Habit formation
Aha moment
set up
This guide focuses specifically on habit formation.
The importance of habit formation
If the habit of using the product is not established, all customers will eventually disappear. By identifying the habit formation moment and building sri lanka b2b leads a habit formation loop, we aim to flatten the retention curve.
Defining the Habit Moment
There are two approaches to defining a habit moment:
Qualitative approach: Define the product's core value prop and customer success, and envision a state in which customers feel the core value and make it a habit.
Quantitative approach: Define signals and scores that can measure customer habituation.
Using the Retention Canvas
Use the Retention Canvas to clarify:
Use Cases
assignment
Persona
Product Value Prop/Reward
Customer Success
Alternative Products
Frequency of product use
Habit Moment
Habit Moment Metric: XaY
The habit moment index is expressed in the format "XaY":
X: Activation period
a: Core actions that allow customers to experience core value
Y: Number of times a was performed
for example:
Hubspot: 14m4 (Used email 4+ days in the first 14 days)
Airbnb: Yb2 (Booked a room more than twice in the first year)
Through XaY, customers develop a habit of using the product, which leads to continued use.
How to find XaY
Analytical methods for finding XaY include:
Segmentation of retention curves
Venn diagram analysis
Correlation analysis
Other statistical models
This guide provides an in-depth introduction to retention curve segmentation analysis.
4-step analysis to find XaY
Step 1: Segment your customers
First, segment your customers based on various criteria. Below are some examples of segmentation:
Persona: Your target customer
Acquisition path: How did you acquire the customer?
Product Category: The type of product or service you use
Features: Which features are being used?
Device: The type of device you are using
Region: Customer location
Frequency of use: How often the product is used
Initial usage patterns: Behavior patterns during the first period of usage
Combining these criteria allows for more granular segmentation.
Step 2: Plot the retention curve for each segment
Next, create a retention curve for each segment created in Step 1. This allows you to visually see which segments of customers have the highest retention rate.
For example, by comparing the retention curves of "Segment A," "Segment B," and "Segment C," you can see that the segment with the highest curve is the customer group with the highest retention rate.