Users can be divided by this indicator and you can begin to observe

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Joywtome231
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Joined: Sun Dec 22, 2024 4:02 am

Users can be divided by this indicator and you can begin to observe

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1. Retention Rate — customer retention rate. This indicator reflects how many users continue to use your product after a certain time after purchase or first touch. The higher the retention rate, the better for the business from a financial point of view. This will mean that the audience loves your products, conversion rates will be high.

, for example, what unites them or from which advertising channels they usually come.

2. Churn Rate — churn rate. Shows how many old and new users forget iceland phone number list about the product and leave the company over a certain period of time. By dividing all users into groups by this indicator, you will be able to see the real situation, how many potential customers quickly leave you and do not make purchases anymore.

A large user churn may indicate problems with the quality of the online product, customer support, or marketing strategy. If a company loses many users within the first week or month after they join, the first thing to do is restructure internal work processes.

For example, a user came to a website or application from contextual advertising, subscribed to a newsletter. And the next day unsubscribed from it and forgot about the product. And such a situation happens often. It means there are problems in the internal system, business processes.

3. Lifetime Value — LTV, the lifetime value of a customer. This indicator reflects the income that a company can receive from one customer over the entire period of interaction with him. The higher the LTV, the more loyal the customer. He is ready to buy the company's products regularly in the long term. We talked about LTV and other metrics in more detail in one of our previous articles on Unit Economics .

4. Acquisition channels. Cohort analytics by acquisition channels helps to find out which traffic sources bring the most loyal and active users over certain periods of time. This could be advertising and updates on social networks, email marketing, etc. Identifying the most effective channels allows you to optimize your marketing budgets.

5. Transition of users from a trial version of the product to a paid one. Analysis of customer actions allows us to identify groups in which people most often turn from “free” clients to “paid” ones.
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