There are lots of articles out there that tell you what to do in order to increase your conversion rate, and they all make it look like it’s child's play. They’re really fun to read.
It all sounds amazing in theory. However, when it comes to implementing the same framework to run the experiment on your own business, you’ll find out pretty quick that it wasn’t as easy as you were led to believe.
Why is retention important for a SaaS company? Why should a product manager pay attention to this specific metric? You do need to get the users back into the app…
You can’t start charging a user until he has finished the onboarding process.
There’s usually a gap between the onboarding experience and the first payment, and that’s when user retention must be taken into account.
The first impression your product leaves upon the user is critical. If anything goes wrong during the user onboarding process, people won’t be able to receive the value of your product.
The users might decide that your product is not worth dealing with and the return for what you’ve invested up until this point will be minimum.
Congratulations, you've increased your traffic. But can you make the visitors stick around, and turn them into users? You still have to guide the visitors through the whole signup process and convert them into customers.
Otherwise, you won't be able to show them how amazing your product really is, and your revenue won't increase either.
The rule of 72 is a simple hack used in business to quickly figure out how many years it would take you to double your money, given the annual rate of return.
What if you take it a step further and use the rule of 72 to figure out how much it would take to double the growth of your business?
User retention is the scary metric every web analyst, product manager, and marketer is afraid of. I’ve struggled for years to find the magic bullet that will make retention optimization painless.
I still don’t have a quick and easy answer, I’ve come to realise that if you break it down into multiple stages, it becomes a lot easier to tackle.
Reporting retention according to the number of users who have finished onboarding, instead of those who signed up, can make you understand what's the actual issue of the product.