Battlefield Tactics to Improve Customer Retention on Mobile

B a t t l e fi e l d Ta c t i c s t o I m p r o v e C u s t o m e r Re t e n t i o n o n M o b i l e H e n r y C i p o l l a , C o - f o u n d e r & C T O

• Expect immediate value every time• Want a seamless mobile experience across

devices• Demand personalized content tailored to their

specific behavior, location and interactions• Really don’t like to be annoyed by useless push

messages • Perceive there to be an infinite number of apps

Consumer Demands

Bad mobile engagement happens

Mobile Engagement Crisis

▪ 25% of users will only launch your app once▪ 35% of push messages are not segmented▪ 50% of people already view push as annoying▪ 48% of people opt-out of push▪ The most popular metric for determining mobile success is downloads

Signs point to tipping in the wrong direction

Yet, we know users want push

Users with push enabled have

88% more app launches

Source: Localytics, 2014

How do we shift toward the right

path?

• Manage opt-in• Personalize experiences with segments, not words• Send fewer, better messages• It is too late for retention campaigns

#feedyourapp


#feedyourapp

Bad Example

Do not immediately ask for push permissions

(first launch)

• Manage opt-in• Personalize experiences with segments, not

words• Send fewer, better messages• It is too late for retention campaigns

#feedyourapp

Source: Localytics, 2014

“Hi Henry” is NOT personalization

Sports Apparel App

(your entire userbase)

Segment your audience

#feedyourapp

3% of broadcast pushmessages are clicked

7% of targeted pushmessages are clicked

15% of users converted 54% of users converted

BROADCAST TARGETED

Segment your audience

• vs

No Targeting Behavioral Targeting Behavioral and User Profile Targeting

Behavioral, User Profile, & Predictive Targeting

0%

5%

10%

15%

20%

25%

30%

We’ve observed that granular, multi-factor targeting has an

immediate, material impact on retention across a range of

app sizes, categories, and business models.

+190% +250%

+440%

7-D

ay

Rete

ntio

n %


#feedyourapp


#feedyourapp

22

The Churn problem trumps the logic of traditional segmentation and targeting…

…once you’ve observed a user to churn, it’s already too late.

23

Delivery Hero beat churn by getting ahead of the problem.

THE RESULT: > 11% increase in retention in first 30 days.

About:

- Takeaway and food delivery platform

- 2,000 Employees - 34 international markets- 10 million monthly orders- $3.1 billion valuation (June

2015)

THE OPPORTUNITY: Predictive targeting & personalization at scale.

24

By identifying risky behavior early in theuser lifecycle…Discovering the ‘aha!’ moments that lead to true product adoption

• 7+ friends in any given user’s first 10 days

For Delivery Hero…

- Users who performed 1+ Checkout Success Events in their first 14 days were 16% less likely to churn; and

- Users who performed 3+ Restaurant Tapped events in their first 3 days were 13% less likely to churn

- Chamath Palihapitiya Growth @ Facebook

25

…to segment and communicate with churn risk users. - Predictively segment which users

are at-risk of churn

- As users become flagged for churn risk, put them on a ‘happy path’ towards retention

- Sequence of touch points optimized towards maximizing ROI

S A L E S F O RC EM A R K E T I N G C LO U D I N T E G RAT I O N

The Localytics/SFMC integration solves these challenges:

• Localytics Profile data is combined with SFMC Contact data, giving you one complete picture of your users across web and mobile

• Create multi-channel engagement by including Localytics messages in your SFMC Journey Builder campaigns

THANK YOU