Beyond the Aha! moment, by AppCues' Archana Madhavan.
Until you have a strong retention product, there’s little point in focusing elsewhere. To make retention metrics meaningful, you need to understand the concept of a critical event. The critical event describes the action you want users to perform in order to be counted as truly 'active' or 'retained.'
Users may be returning, but are they getting to the core value your product offers? You should count users as retained only if they return and perform a meaningful, critical event, not if they just 'showed up.'
Airbnb’s critical event is making a booking. The company’s growth and success depends on hosts listing accommodations on Airbnb and users booking them. User that derive different value from a product should have different critical events and different retention metrics.
Once you’ve determined your critical event, the next step is to ask yourself when you expect users to come back to perform this event in order to be retained.
When creating products for consumers, form matters, says Alex Obenauer.
In Summary: Unlike businesses, consumers are human and emotional. They care about status and achieving life aspirations. The longer a new technology has been around, the more competing products grow, the more form matters.
If your product is so innovative that consumers struggle to know what it is, consider using visual elements to guide understanding of the product, even if they are functionally unnecessary. Sometimes we have to help carry consumers into the future.
Be creative about what your product could discern on its own, to require less from the user. The first 4 digits of a person’s credit card number will tell you what type of card it is, so don’t ask for it!
Sometimes the solution is not to charge less, but to charge more. Not for the sake of it, but to create a product worth more and use the larger overhead to fund what’s next - in Tesla’s case, a more affordable electric performance vehicle.
There’s always time for disruption and newcomers, even in industries like auto & oil.
Think content & community, says Nir Eyal.
In Summary: It's difficult (if not impossible) to turn infrequently used products into a customer habit. But, even infrequently used products can keep customers hooked.
Rather than trying to make the product into a habit, infrequently used products should build habits around the product. There are at least two ways to build a habit around an infrequently used product: content and community.
When it comes to designing products people love, far too many companies focus on getting customers to check out instead of getting them to check in.
Companies looking to build consumer habits should remember that monetisation is a result of engagement, not necessarily the other way around.
And last, says Harvard Business Review.
In Summary: Prioritising easy money over better UX is the opposite of customer-centric. If the UX feels more like 'User Exploitation' than 'User Experience', the business is ripe for disruption.
Facebook and Google make great money from mobile advertisers, but ad-loading delays often cause users to abandon their products entirely. Not surprisingly, both are leaning on advertisers to speed up their load times or else.
Abandonment in any form is an increasingly measurable outcome. Advertisements that genuinely interest or intrigue users will be welcome no matter how intrusively or invasively they appear.
The leadership challenge around customer centricity will become sharper and starker both inside the enterprise and out. Will business discipline revolve around optimising UX for customer value? How a business defines and manages its abandonment ratios will tell you the answers.