MAU Retention Recap

MAU Retention Recap

Companies often focus on attracting new customers because they believe that new customers will help increase their revenue and growth. However, many companies overlook the importance of retention. Without retention, no companies will be able to optimize their company growth because the customers you attract today will only leave tomorrow.

So what is the best way to execute a retention strategy?

To begin, companies must realize that there are three types of customers in this world. The first being those who use your apps occasionally. We will call them the Occasional Oscars. These are people who use your platform once or twice a week or less. They tend to download your app because you had a special promotion or that it was convenient for them at the time. They have no emotional attachment to your services and can easily replace you with a competitor. The second group includes those who use your services more than three times a week. We will call them the Loyal Lucys (Power Users). Loyal Lucys see your service as more than just a service, it is a platform that they depend on regularly. This group is the group that will generate the most long term profit for your company and will be the ones to promote your services through word of mouth. The last group of people is the Exit Earnie’s (Dormant Users). These are people who had once installed your app but uninstalled your app because they did not see any more value in it. This segment of people will be difficult to obtain since they have already established an image of your app and would require a large sum of investment in time and money to convince them otherwise.


Option 1.

To maximize your retention value, you must identify which of these three groups you would like to focus on the most. When choosing which group to invest in do not think only of the group that will retain the most users but also value. Companies must realize that retaining more users does not equate retaining more value. At the 2019 MAU conference, the CPO of Scoop gave a great analogy between the difference of retaining users and retaining value.  Imagine that you are selling t-shirts. The more expensive option costs $50, while the cheaper option costs only $5. You now have the option to either invest in retaining 10 users that will purchase the $5 t-shirt or 3 that will purchase the $50 t-shirt. It is evident that investing in the three people that will buy your $50 t-shirt will generate more profit and value; therefore, it is much more worth investing in the three people than the 10 people who will purchase the $5 t-shirts.


Option 2.

Manage your retention in the three different groups of users there are for your services/products: Occasional Oscars, Loyal Lucys, and Exit Earnies. Set different goals for each group. Twitch uses this tactic and have talked about how they separated their retention team into a Growth team, Product team, and Laps Users team to deal with the different types of users respectfully.

The Growth team will focus on the initial on-boarding process through free trials and re-targeted messages. One effective onboarding campaign, especially for games, is to have people trial the game up to a particular stage. Companies often choose the stage that fully displays the game’s features and characters; therefore, allowing customers to fall in love with the program and develop a sense of attachment to the game. This will trigger these users to purchase the game.

The Product team aims to improve the user experience for current users. One way that has been proven effective is as done by Airbnb. Airbnb will have pop-up questions with no more than one multiple choice survey questions asking users if they liked the newly added feature or what can be improved. This tactic generates a greater number of answers since it is much more time efficient for users to answer than a full-scale survey.

Lastly, the Reactivation team focus on regaining users who have uninstalled or unsubscribed to the platform. Twitch tackled this problem by analyzing these users’ data previous to uninstalling. The Laps Users team then attempts to retarget these users with similar content they had previously enjoyed.  


Simply acquiring new customers is not enough, companies must learn to retain them as well. We hope that through this article you have a better idea of the different retention strategies. We heavily emphasize the importance of determining a strategy that will generate the most value for your company. Create a concrete retention plan and build a team to manage it. It is through retention can a business continue to grow in the long term efficiently. Without it, companies must invest an abundance of resources to a yield that is not optimized or sustainable.

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Written by Susanna Wang

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