3. Target at each stage of user life cycle
Once you know your retention curve, you can divide your users based on customer journey so that you can target them at each stage of their user life cycle. This helps to identify what users are doing to reach the next stage and replicate the same for new user.
Users can be divided into:
- New Users: Recently acquired and active on the app
- Current users: Active on the app and have been returning for some time
- Resurrected users: Quit using the app then became active users again
- Churned Users: Previously active on the app, but are no longer active
Before we get into dividing the users on this basis, you should identify which is the most valuable, and the time it takes for 80% of different users to repeat their cycle. This time period is referred to as product usage interval.
Now that you know your product usage interval, here is how you can divide the users.
After dividing users, target users at each level. Look for behavioural patterns and build user personas. For example, the following are persona’s for active users for YouTube.
- Heavy content creator
- Low Content creator
- Content Consumers
Investigate each persona to understand what triggers them to move onto the next stage of user life.
New user analysis is critical to move the retention curve up and even 2-3% improvement in new retention results in incremental growth.
New users go through these stages:
- Value discovery
- Habit formation