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Are you letting your unengaged users leave without putting up a fight?

January 26 · Issue #8 · View online
DataDiary by InnerTrends
Why let your unengaged users leave without putting up a fight? They are your ‘easiest prey’.
Working with various SaaS companies, we came to the following staggering conclusions:
Fact: Between 20% and 60% of your active users are not engaged.
Fact: these so-called ‘no engagement users’ have a churn risk almost 10 times higher than the ‘high engagement users’. They are the first clients to abandon your app.
Engagement data from a B2C SaaS Product
Our stats also show that the churn rate can decrease a massive 3 times for the users who perform at least one engagement action in you app versus the ones who perform no action at all.
So what are engagement actions? They refer to actions performed by your users to solve the problems your app is supposed to fix. 
Basically, can look at this issue from 2 perspectives
  • No engagement users are one step out the door, so they are most certainly a lost case. Why bother use resources on them?
  • No engagement users are your greatest opportunity. They once got value from your app, all you have to do now is understand what changed for them and how you can help them to get them back on track.
Which point of view will you choose?
Finding new customers takes a huge effort both time and money-wise and puts a lot of pressure on your marketing team. So… letting go of the users who decreased their interest in your app yet is not the smartest strategy.
It’s a pity to focus only on looking for new customers and at the same time not to make the best of your already existing users - however little they are using your app. 
At best you can re-engage a part of them. The worst that could happen is that you lose them, but you can get valuable info on why they churn and learn your lesson in order to avoid losing that many clients in the future.
Re-engaging your unmotivated users is the cheapest and easiest way to gain more revenue from your existing customer base. 
How can you stop them from leaving?
This is how we do it at InnerTrends.
First, we split users into 4 categories:

  • High engagement users
  • Medium engagement users
  • Low engagement users
  • No engagement users

These categories are based on the users’ engagement scoring, which we calculate as follows:

  • We create a list of engagement actions. These actions answer two essential questions:
    • What is the reason people come to our product?
    • What actions do they perform to reach their goals?
  • Each time a user does an engagement action, they receive engagement points.
  • Their engagement score is the result of their engagement frequency and engagement points.
  • A data science algorithm then splits the users into 4 categories.

Second, armed with these figures, we can analyse and compare both types of behavior - of the ones engaged with an app and the ones who are not:
This allows us to understand what brings users back to the app, and
  • for the highly-engaged users: what keeps them into the app
  • for the unengaged users: why do they keep coming back to the app but not perform any engagement actions

We use this data to target the users based on their engagement level and decrease as much as possible the number of users who are not engaged. It’s much easier to do it like this than target users who have already churned. 
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