Acquisition vs. retention The importance of customer LTV with Olive Sen of OLX India
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The document discusses the importance of customer lifetime value (LTV) in the context of customer acquisition versus retention, using a webinar by Olive Sen, a director at OLX India, as a reference. It highlights the significant costs associated with low retention rates and the impact this has on user acquisition budgets and overall profitability. Additionally, it offers strategies to optimize user engagement and reduce churn by focusing on core activities and addressing user issues.
Acquisition vs. retention The importance of customer LTV with Olive Sen of OLX India
- 1. Acquisition Vs Retention - The Importance of Customer LTV with Olive Sen WEBINAR 1
- 2. Speaker ● Olive Sen ● Director - Strategy & Growth ● OLX India 2
- 3. Helping 550+ clients worldwide attain massive scale Recognized by Market Research and Industry Leaders 55+ Billion Events Recorded per Month 40+ Billion Messages Sent per Month 500+ Million User Profiles Processed Every Month Featured twice as one of the highest-rated in the ‘Mobile Marketing Automation’ MQ in terms of customer experience Digital CX Competency partners for achieving scale and innovation with AWS Vendor Landscape for Mobile Engagement Automation solutions 3
- 4. 4 Acquisition Vs Retention Let’s take an example
- 5. 5 Let’s consider 5 apps
- 6. 6 30 Day DAU Let’s say, 100k users download the apps daily for each of these 5 apps. And these downloads are all organic (not paid). How will the DAU count for each app look like after 30 days?
- 7. 7 Catching up with “App D” DAU count How many new users should I acquire “daily” to have the same number of DAUs as App D? Assuming I don’t improve my retention rates
- 8. How much would it cost to reach the same level of DAU’s as App D? A Million Dollars more every month..!!! 8
- 9. But Retention % are not the same for Organic and Paid Channels - What then? 9
- 10. So even a small % decrease in retention rate can mean 100s of thousands of dollars in Acquisition Budgets. And more budgets to reach the same number of DAU’s = Higher cost across the user lifecycle, which will impact your LTV. 10
- 11. Customer Acquisition Strategy Campaigns targeted towards achieving lower funnel actions Volume campaigns which are based on upper funnel actions 11
- 12. Plugging Decrease in DAU’s 1. Optimizing campaigns based on the user journey drop-offs. 1. Target users who did not perform the required in-app actions & also dropped off during this period. 12
- 13. How Do You Reduce Churn? 1. Identify core engagement activities- They maybe 1 or several, based on your app. 1. Divert more users into the core engagement funnels immediately after acquisition. 1. Create new / additional engagement funnels over time, as we continue to acquire new sets of users. 1. Try to identify the problems faced by users who churn, and solve these issues. 13