Execution: Retention Basics
Candidates often use retention as a buzzword. Retention can mean user or revenue retention. In a healthy product they move in the same direction, but there is no guarantee. When you discuss retention in an interview, breakdown your thoughts and explain your thinking clearly.
Retention Measures
Who - Which Users
What - Which Actions
Retention Loops
Viral - More touch points means increased retention and more users
Paid - If ads work they lead to more customers through ads that lead to more money into the ads.
Content - More Content = More SEO (create > indexed) which leads to more users
Monetization models
Ads - More users mean more slots for ads to be show. (Think more ad inventory.)
Subscription - Recurring revenue is always good. Keep them active and they see the value and don’t canel their subscription.
Transaction - Increased transactions is the name of the game for e-commerce.
Freemium - More freemium users that are happy turn to more full-time paying customers.
Advice on Metrics
Don’t just focus on MAU
DAU trends against MAU trends will show you a lot about your fundamentals
Maintain a long-term and short-term focus
Inspiration:
Reforge - Usage Retention
