Engagement: A Long Haul Game
Source: Sequoia Capital Publication

Engagement: A Long Haul Game

Ever wondered why your company is making that free feature to drive engagement? ?? Hey there! During my tryst with engagement & retention I stumbled upon some gold nuggets and, oh boy, it's a game-changer for long-term wins!

You know how every company dreams of you falling head over heels for their product? Well, turns out, engagement is the secret sauce that makes users stick around and fuels growth. Dive in with me to understand


Imagine Elon Musk(analogy for your company) hosts a never ending magical party(analogy for your product), with each guest representing a different type of user. In our magical gathering, we have three types of guests:

1. Fred Weasley (A) - Mr. Sticky: He is the life and soul, dazzling everyone with his charm, Active every day(7/7). Fred represents our most engaged users.

2. Hermione Granger (B) - Ms. Maybe (5/7): She enjoys the scene but from a distance, like a casual onlooker. She symbolizes users who engage with our product occasionally.

3. Severus Snape (C) - Mr. Meh (2/7) The Enigma: Rarely participating, already halfway to the door. Severus is like the users who register but barely engage. Nobody really knows why they are here, until they leave!

Now if I ask you who is more likely to leave the endless party hosted by Elon? Obviously your answer would be Snape. What we should also observe here is that the more a person engages like Fred in a party, the more likely he is to stick around, & be retained in the party over time.

Above all, Fred is more likely to give a call to all his friends & bring them to the party aka drive growth!

These characters are not just here for fun; they're the key to understanding user engagement and retention.

  • Fred (A): Highly active, returning daily. He's the dream user, finding immense value in your product- Found those ‘Aha’ moments!
  • Hermione (B): Moderately active, some days more than others. She needs just the right nudge to become more engaged.
  • Severus (C): Least active, risking churn. Understanding why he's disengaged is crucial. Here's when the magic happens: Identifying and enhancing the 'Aha!' moments for each type becomes the essence to boost engagement and retention.


How to make a compelling Engagement recipe?

1. Spot and Enhance 'Aha' Moments: Identify what delights your users. For Fred, it's the constant discovery and interaction. Aim to replicate these moments for Hermiones and Severuses.

2. Personalize the Experience: Tailor your product to suit different user needs. What keeps Hermione coming back, albeit less frequently? Enhance those features.

3. Prevent Churn Proactively: Keep an eye on Severuses. Use analytics to understand why they're less engaged and address these areas.

?? Common Pitfalls in Engagement Strategies:

  • Misaligned Strategies: Like playing the wrong music at a party, failing to align your product with user expectations can lead to disengagement.
  • Ignoring User Segments: Not all users are Freds. Recognize and cater to the Hermiones and Severuses too.
  • Chasing Numbers Over Experiences: Engagement isn't just about logins or clicks; it's about meaningful interactions and satisfaction.

Always use the magic of DATA!

Imagine one day Severus decides to leave Elon Musk's party. His absence is a subtle yet important signal, as it will lead to a decrease in Daily Active Users (DAU) for that day. If all Severus like users continue to do the same for over a week, there would be a subsequent decrease in WAU. Therefore, one should note, that a decrease in DAU might not immediately affect the Weekly (WAU) and Monthly Active Users (MAU), but it can be an early indicator of a potential shift in user engagement patterns. Similarly WAU is an early indicator for MAU- One can simply set alerts, understand the why & act early on!

This does not even stop here- consider the example of a multiplayer online game, where active participation is key, a drop in concurrent users can signal upcoming decrease in DAU, and hence WAU, and beyond. Therefore, setting up such KPIs, keeping an eye on these early signs allows us to proactively address user engagement, prevent larger declines & pivot as quickly as it can be!


?? Closing Thoughts: Create Magical User Experiences!

Remember, the goal is always to create an environment where users, like guests at an enchanting party, feel valued and excited to participate. Engagement isn't just a metric; it's the magic that turns casual users into brand advocates. So, whether you're conjuring up the next big app or optimizing an existing product, remember: the key to sustainable growth is enchanting your users at every turn.

#UserEngagement #GrowthStrategy #TechMagic

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