According to a study from Econsultancy and Oracle Marketing Cloud, 40% of companies are more focused on acquisition than retention. The prevailing estimate is that it costs five times as much to attract a new customer than to retain a current one.
Even more important, in my opinion, isn’t the cost of acquiring or retaining a customer, it’s the revenue and profitability of extending the life of a customer that really helps a company’s performance. And this still doesn’t take into consideration the impact of a current happy customer sharing and attracting new customers. Simply put, retention is as powerful as compounding interest is to your retirement account.
Compass by Amplitude allows platform developers observe user behavior and then indicate the impact of those behaviors on your overall retention. If you recognize this, you can then work to re-engineer and optimize your platforms to encourage retention.
Compass scans through your user data and identifies the behaviors that best predict retention. Understanding these behaviors is the key to improving your product and driving sustainable growth.
The company has a case study from QuizUp, one of the largest social trivia mobile applications on the market. By analyzing customer behavior, they were able to improve their application’s user retention.
Here’s a preview of Compass.