The bottom line
Retention and engagement drive app growth, and machine learning on detailed behavior data can personalize and re-engage each user. Without them, churn shrinks your real addressable market far below what acquisition promises.
Key takeaways
- Retention, not acquisition, sets how big your real market is. 4:15
- The model assumes a 100 million addressable market, a 10% conversion rate and about five shares per user.
- At 80% retention, that market settles near 43 million users, and it keeps shrinking if you stop spending on acquisition.
- Growth has four stages, and most teams only work on the first. 6:56
- The stages are acquisition, onboarding and activation, engagement, and retention with loyalty and referrals.
- About 90% of the talk at conferences is on acquisition. Casual game makers keep launching new games because they lose users in the old ones.
- Tracking user actions and attributes shows what to build next. 8:40
- Instrumenting too many events without detailed attributes hides how users really behave.
- Tying behavior to a user ID, plus web and mobile traits and CRM data, lets you personalize down to the individual.
- Machine learning can predict churn and trigger campaigns automatically. 11:55
- The model can flag a user who is likely to leave in about three weeks, then fire a coupon or a game offer.
- Combining Android and iOS data finds the segments, and a one-line capture means no engineers are needed to instrument.
- Within three or four years, every user will see a different app. 13:48
- Screens, content and offers will differ per person, and each segment will level up at its own pace.
You're not really eliminating the data scientists, but what you're doing is you're applying them to understand the business rules much more than the technical rules.
Scott Ritchie, Pyze
Chapter summaries
0:00 Every user will get a different app
Personalization by segment, driven by machine learning, is where apps are heading, and small tricks can still move acquisition.
- Each person will see different content in the same app. 0:52
- Everyone in the room has the CNN app, but each person would open it and get different content.
- Offers differ by segment, so some segments level up faster than others.
- Games change for each player too, not only news feeds.
- Slower segments get more discounts to push them up a level.
- A small growth hack can push an app to number one. 1:55
- Pyze's co-founder built an app that reached number one in its vertical.
- The data came from SDKs worldwide: manufacturer, usage, and which screens people view.
- Behavioral data like this can be bought and used to drive acquisition.
2:58 Retention decides how much of the market you keep
Acquisition fills the market, but low retention drains it again once the spending stops.
- Growth by sharing climbs toward the market ceiling, then falls back. 3:05
- It starts with 100,000 organic or acquired users, and every one of them is asked to share.
- The curve passes 50,000, then 80,000, and approaches the carrying capacity.
- Past the peak, with no new acquisition spend, the market shrinks to about 17 million.
- Roughly 36 months after the peak, the app is close to empty.
- Only casinos escape the churn, because real money keeps players. 6:13
- Casino apps have huge retention because it is gambling.
- In casual gaming, users leave the core game for other apps.
7:19 Analytics can carry engagement and retention
Analytics with machine learning can cover engagement and retention without leaning on product development and creativity.
- Acquisition costs money for every user, so keeping users needs its own system. 7:29
- You pay for each new user, and analytics is what drives the rest.
- Machine learning takes on engagement and retention work that creative teams would otherwise carry.
- The point is that product teams don't have to guess what to build to hold users.
- Ritchie says this is his belief, not a proven rule.
- A checklist runs from instrumentation to automated campaigns. 7:54
- Instrumentation, usage analytics, attribution, segmentation, personalization, engagement triggers, retargeting triggers.
- Segmentation asks which groups of users behave alike.
- Personalization covers screens, content and future gameplay.
8:40 Track user actions and their attributes
Detailed action data shows what users already do, so features can follow real behavior.
- Measure what users do, not which features exist. 8:43
- Look at clicks and decision points inside screens and content.
- Build new features that match how the current base behaves, not something brand new.
- Start from the big picture: where the game should go and which metric a feature should move.
- Analyze usage rates for that feature and apply the findings from that subset.
- Attributes on events steer product direction in real time. 9:42
- A gaming client defined very detailed attributes for how users engage with each event.
- New events can then be attributed to a segment or cohort of users.
- Traits should follow a login from web to mobile and back.
12:25 One tool instead of a scattered stack
Today's analytics tools are split across teams, and a single system could replace the patchwork.
- Large organizations spread analytics, segmentation, recommendations and messaging across separate tools. 12:30
- Product managers, data scientists and marketing analysts each use different tools.
- Coupons.com is the example of a big organization built this way.
- Recommendation engines sit in one place and messaging campaigns somewhere else.
- Better engagement means more purchases, such as in-app coins. 14:06
- Ritchie ties engagement directly to in-app purchase revenue.
- He also ties it to the value of an exit, when selling the company.
In the growth library
Scott Ritchie, Head of Business Development at Pyze. Acquisition gets most of the attention, but retention decides how much of your addressable market you actually keep, so build analytics, segmentation and automated engagement around real user behavior. The talk sizes the effect with retention models and gives a checklist for personalization and churn prevention.
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