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The biggest driver for high LTV is repeat purchase behavior (in an e-commerce business) respectively a low churnrate (in a SaaS company). Even more interesting are businesses that create network effects like marketplaces or socialnetworks.
This churnrate, as it’s called, is comprised of subscribers who unsubscribe, mark your email as spam, change employers (and therefore email addresses), and so on. On top of the 30% churnrate, there is a portion of your list – in many cases a significant portion – who are unemotionally subscribed.
The traditional push marketing approach has given way to a new approach that entails engaging customers through socialnetworking, blogs and video. Not working on feature requests has, in a large way, contributed to our churnrates. Photo Credit: Bailey Whissel. The way marketing is done is changing.
Will that be enough or will high churnrates creep in, new toys be introduced into the market, new time sucks pulling user attention away? So resume + directionally-correct social graph = goldmine for recruiting, networking and marketing. This year’s Tamagotchi?
The toothbrush test is definitely a great benchmark for any socialnetworking site. And it’s also why socialnetworks for travellers or events have struggled to really scale. Products that are critical to the daily workflow, like business management software and collaboration tools, tend to have the lowest churnrates.
Boardex and Relationship Science make it easier to understand and map socialnetworks into potential limited partners. LPs, coinvestors, and press use these tools, so I work for free for these data vendors to make sure that their data about our activities is correct.
In fact, when we use the term “social platforms” at Version One, we’re referring to messaging (e.g. WhatsApp, SnapChat, Facebook Messenger), private socialnetworks (e.g. Facebook, LinkedIn, Shift Messenger ), public socialnetworks (e.g. After we understand engagement and churn, we can perform cohort analysis.
Perhaps it's an increase in your conversion rate; Or a higher number of visitors who sign up; Or a greater number of people who share content with one another; Or a lower monthly churnrate for users of your application; Maybe it's even something as simple as getting more people into your restaurant.
The network effect from creating user accounts with social profiles also has potential upsides for user and revenue growth. Churnrate is proportional to the distance between sign-up and value. via Intercom). ” This is a great demonstration of the “ask for only what you need” principle Samuel describes.
It might be fun to spend two hours daily on Facebook or Twitter hunting for customers, but the more important question you should be asking is whether your prospective customers are looking for you on those socialnetworks. You can read more in Can Social Media Help My Company?
Sure, the barriers to entry are lower, and customers are one mere click away from their growing socialnetworks. But if only the entrepreneurship journey was as straightforward as this. These entrepreneurs soon find out it is not. But the noise. How to be noticed when everyone is shouting? “
If you’re getting 2% upgrade to paid, but 15% monthly churn, then you need to spend more time on the Pro features to insure the cost benefit is there. How can I lower my apps churnrate? How do to THAT w/ a very tight budget? Offer equity to a programmer? Hire an outside firm to do it? Or start a wordpress site and do it myself?
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