Customer acquisition is hard and expensive. When you watch a hard won customer leave your fold, it’s like watching that snowman you spent so much energy building melt before your eyes. In a lot of cases, we’ve come to accept high churn rates as inevitable (the average iOS and Android app only retains 4% of its users after the first year!), but we think that’s horse-puckey.
Here are 3 best practices for reducing churn:
The right content is personalized content. Some of this is obvious: stop sending French videos to native Swahili speakers, stop sending sports headlines to someone who only reads the finance section. But personalization, when done right, is much more nuanced and, well, personal. Personalized content means that a user is more likely to engage with your email or push notification, but it also sets a higher expectation for your next notification, and people who are looking forward to your next email are not churning.
Our platform starts with one basic assumption: everyone is unique, so every message should be unique. Segmentation can help you make predictions based on past behavior or demographics, but we go further. We create an evolving picture of every individual and every piece of content. We can predict, in real-time, what content is likely to engage any given user at any given moment. We use that insight to create email and push notifications that are “individualized” with content that is most likely to drive your desired outcome (click, share, etc).
There are lots of resources and analytics tools that can tell you the best time to send an email, or a push notification, or a tweet. The better ones can even help you determine the optimal time to send a particular type of message (acquisition/special offer/newsletter, etc). The problem is that these are all based on averages (“More people opened this type of email in this time range than at any other.”), which creates a marketer’s version of a Gambler’s Fallacy.
We send notifications when more people will open them because we’re acting on the assumption that you have to send an email to all recipients at the same time. You don’t. Boomtrain’s predictive analytics enable you to determine each individual recipient’s “Prime Time,” and automatically send their individual notification at that moment. An individual’s Prime Time is that moment when, based on real-time data and historical behavior, they are most likely to engage (click, watch, read, share, you name it) with the type of content you are sending. Our platform enables you to hit send once and have your (personalized) message delivered to each individual at the moment they’re hungriest for it.
Know they’re leaving before they do
The best time to save a relationship is long before the breakup. Talk out your issues before they become problems. The same logic applies to customer relationships: once a user gets to the point of breaking up with you (churning), getting them re-engaged can be almost as energy-intensive as acquiring them in the first place. But, how do you know?
Just like with a relationship, there are subtle cues that indicate a trend towards churning, and our algorithms are sensitive (pun intended) enough to pick up on them. We look at trends in behaviors at both a macro (all users) and micro (individual behavior) level. We can help you identify customers that are giving off signals of diminished interest before they fully disengage, so you can take steps to re-engage them.
The bottom line is that churn is much more expensive than nurturing. Invest in retaining the customers you’ve worked so hard to acquire, and you’ll have more money to spend growing your base.