imagine being able to acquire users for just pennies. Sounds like a dream come true for any growth marketer, doesn’t it? Now imagine the same scenario with the worst possible retention rate, and it quickly looks like a nightmare.
Whether you’re a construction company, software startup, or Fortune 500 company, retention is a key metric for customers, employees, and partners.
Growth marketing isn’t a silver bullet to solving the retention problem, but there are certainly tactics that can be implemented to help improve it.
Let’s dive into it.
Growth and product
Within a company, growth and product teams have to fit like a glove. At Postmates, I saw firsthand how a well-oiled machine could work together to tackle customer conversion and retention. We used to have weekly meetings between the teams to discuss trends in conversion rates and customer loyalty across growth mediums.
I think the three main areas of growth and product should be:
- Improved measurement capabilities.
- Channel-specific landing pages and/or feeds.
- Test new products and initiatives.
A consistent issue and theme that I have seen cause countless headaches in startups is the lack of measurement capability. Accurately measuring conversion volume is essential for all businesses. Otherwise, the efforts become ineffective.
It would also be naïve to think that measurement is a set-and-forget type of task. Measurement should be approached as a constant work in progress, as the channels and landscape of privacy are constantly evolving.
It is imperative to continuously analyze the sources of growth at a detailed level and at the bottom of the funnel.
Working in sync with the product team on specific growth campaigns will help you personalize initiatives, measure them accurately, and increase the chances of success. Imagine having a specific funnel for visitors who are new versus those who are retargeted. Or how about having different landing pages just for influencers? These are just a few of the examples of tests growth and product teams should perform.
Whenever a new product, feature or promotion is launched by the product team, the growth team should be the first to get their hands on it. All lifecycle campaigns and paid acquisition teams will be the first point of contact for customers, so ensuring there is an understanding between these two teams is crucial.
If the growth and product teams work closely together and prioritize the main goals mentioned above, you’ll see huge improvements in retention.
When I was working on fleet (or driver) acquisition at Postmates, we went from budgeting using a simple methodology to measuring channel efficiency based on LTV and loyalty. How long did our drivers stay on the platform, if acquired from Google rather than Facebook?