Monetizing Retention Data

Why Understanding Unique Users Through Retention Data Matters

Illustration by Aleksandr Smetanov from Ouch!

Whenever I work with clients who are looking to prioritize retention, there tends to be two major gaps. First, their retention data is not connected to their financial data in any discernible way so while they want to positively affect revenue, there is no clear correlation in the data so there is no clear path on how to do so. Second, when it comes to retention, understanding your ideal user cadence tends to not be aligned with business expectations. For example, if your users buy a monthly subscription, how often do you typically expect them to login? Yes, naturally you want your users to pay every month and continue to pay as time goes on but thinking about the ideal engagement level should be tied directly to retention. Not only that, retention should be thought of not as an end goal but a continuous process which requires clear connective tissue between the data, your retention tactics and your revenue. Thus, it is paramount that you understand what customer engagement level is correlated most strongly with retention, and by extension, long term value.

First and foremost financial data and behavioural data need to be inextricably tied for any retention tactics to have true business meaning.