Mastering The Art of Winning Back Lost Users

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Mastering the Art of

Winning Back Lost Users


Table of Contents
Introduction 2

What is a Win-Back Campaign? 2

3 Steps to Executing Your Win-Back Campaign 3

a. Identify Whom You Need to Win Back 3

b. Understand Why They Left 5

c. Select a “Winning” Win-Back Strategy 7

The Do’s and Dont’s of Win-Back Campaigns 17

Additional Resources 19

1
Introduction
With the average app losing about 90% of its daily active
users in the first month, bringing users back to life is a
challenge that every app will face.

Mobile marketers often stop and ask themselves: What


did we do wrong? Why did they lose interest? And (more
importantly) how can we win them back?

In this ebook, we’ll uncover the benefits of win-back


campaigns along with proven strategies that’ll help you
bring users back from the dead and move the needle on
retention.

ON

What is a
Win-Back Campaign?
While many apps blindly follow this approach, you
A win-back campaign is any deliberate outreach by a
should be aware that acquiring a new customer can
business to get users back in the app. Once they’re
be up to 25x more expensive than retaining an
re-engaged, the app must reestablish trust and try to
existing customer. 1 So an acquisition-focused strategy
retain them as active users.
will soon have your app underwater — facing costly
acquisition campaigns in a never-ending cycle of
Effective win-back campaigns can lower acquisition
replacing lost users.
costs by keeping retention rates high and improving
CLV (Customer Lifetime Value).
Bottom line: When you play the long game by
reviving dormant users and turning them into lifers,
But, why should I focus my efforts on the users who
you’re fostering a retention-centric strategy that will
left? I’ll just acquire new users tomorrow.
accelerate customer lifetime value and revenue.

2
3 Steps to Executing Your
Win-Back Campaign

A. Identify Whom You Need to


Win Back

The first step is to identify dormant users. Sounds easy Your definition of dormancy might be different than
enough. other apps.

But what defines a dormant customer? How long have For example, a travel app that sees activity based on
they been dormant? What was their activity frequency when users plan their travel might label a user inactive
before they went dormant? Not as easy to identify as you after 3 to 6 months. A streaming service that offers a
thought. monthly subscription will expect a renewal each month.

Before we jump into blasting everyone with So the first step to executing a win-back campaign is to
re-engagement campaigns who stopped using your app define when a user no longer sees value in using your
yesterday, you need to define what dormancy means for app. (Notice how I didn’t say “no longer sees value in
your specific app. your app.” More on that later.)

ON

3
Segment Your Users with RFM Analysis frequently they engaged with your app. It not only helps
you identify champion users, it also pinpoints your
The last thing you want to do is to dump all your hibernating users.
lapsed users into a single bucket and start wooing
them back with the same message. RFM Analysis helps you answer questions like:
• Who are the most active users (i.e. power users)?
No two dormant users are the same. Each one has a • Which formerly active users are starting to go
different experience with your app, and your dormant?
campaign should be relevant to their experience. • Which users are most likely to respond to win-back
RFM (recency, frequency, monetary) analysis helps campaigns?
you bucket users based on how recently and

RFM Cannot Lose Them

RFM
RFM At Risk

RFM
RFM
Freqency Score

Hibernating

RFM
RFM
Recency Score RFM
These customers have a high frequency, low recency score which
,
k campaigns
For win-bac
means they used to visit your app often, but haven’t in a while and

sweet spot:
this is your
are at risk of churning. While these folks are already familiar with
your brand, they might just need a little push to get going again.

4
B. Understand Why They Left
There are a handful of tools, such as Funnels,
Not all win-back campaigns are created equally. Once you
that allow you to see how users are navigating
define who you're targeting with your winb-ack campaigns,
your app. They show you all of the common user
your next step should be asking, “Why did they leave?”
paths and friction points inside your app —
Understanding why they fell out of love with your app will give
revealing what users do right before they
you a better idea of how to win them back.
convert and right before they churn.

FUNNEL Say, for example, you’re a fitness tracking app.


After the third visit to your app, you prompt users
to create a profile. Using Funnels, you might find
80%
100%
a steep drop in activity after users see this
Drop offs
prompt. So, your win-back campaign might be an
60% 79% email or a push notification detailing the benefits
of building a profile — such as tracking workouts
USERS

40% 45% or access to a community board where users


share fitness tips and healthy recipes.
31%
20%
27%

0%
APP SIGNED PRODUCT ADDED PURCHASED
LAUNCHED UP VIEWS TO CART

0.394%
Flows is another way to visualize the user journey 110 of 27.9k
Users
within your app. Start with a specific event (such
as an uninstall) and track backwards to see how
your users ended up there. Then use this data to
customize your campaigns based on their unique
interactions with your app.

Category Viewed Searched Added to Cart Support Call App Uninstalled

5
Top Reasons People Uninstall Apps
While there are a myriad of reasons
why a user might stop engaging with Not in use 13.9%
your app, we’ve done the legwork to
narrow it down. According to our recent Limited Usage 18.7%
survey of over 2,000 mobile app users,
the top reasons for uninstalling Excessive advertising 16.2%

apps are:
Excessive notifications 12.6%

• The app is no longer useful


Confusion 5.4%
• Limited storage space
• Too much advertising 5.4%
Technical issues

Other 1.6%

UNINSTALL

6
Postmates

C. Select a “Winning”
Win-Back Strategy

Now that you’ve identified who left and


why, you can start strategizing how to
get them back. An effective win-back
campaign should not only capture their
attention, but give them a valid and
attractive incentive to use
your app again.

Here are 10 strategies for winning back


your lost users:

1. Pique their curiosity

If there’s one thing the popularity of


Buzzfeed quizzes tell us, it’s that
people are innately curious. The
anticipation of not knowing which fast
food restaurant you are is just too much
to handle! Play to that curiosity in your
win-back campaign so your users will Postmates did this well by sending an email with the subject
have no choice but to open your app. line, “Your Myster y Discount Is…” To receive their discount,
users had to open the app using a deep link. Regardless of
what discount they received, it was their curiosity that drove
them to open the app.

7
Dollar Shave Club

2. Make it personal

Your users expect a unique and


personal experience when they engage
with your app. So making them feel your
relationship is special becomes even
more critical when they stop using it.

Using a tool like Flows, tailor your


outreach to pick up where the user left
off. Continuing the conversation can
help potentially expose an unresolved
issue, and make the user feel like
they’re your top priority.

This is a great example of tweaking the messaging so it’s relevant to


the user’s experience. Dollar Shave Club sent an email to users who
used their platform once but didn’t “stick around,” while also
highlighting social proof of brand loyalty and trust.

8
Apple Music

3. Re-establish value

MUSIC 4h ago
Just because a user is dormant, doesn't
mean they don’t see value in your app.
It’s Not Too Late
They just no longer see value in using
your app. That’s your cue to
Try Apple Music again for 3 months free.
re-establish that value.

Why do users download your app in the


first place? Now’s the time to let your
value shine, front and center.

Take a page from The Godfather’s playbook and make them an


offer they can’t refuse. Apple Music invited users back into
their platform to prove their value with a generous 3-month
free trial.

9
Sephora

4. Provide instant
gratification

It’s simple: users are more prone to buy


when they are rewarded for doing
business with you. They’re looking for
justification in choosing you over
another app and a small gift or reward
can be the deciding factor.

In fact, it can be as simple as changing


the copy to persuade a purchase.
While we know words like “free” and
“new” push users to buy, “instantly”
may be the most persuasive word you
can include in your copy. 2 That’s
because these words are powerful
tools that allow users to visualize their
problems being solved right away.
Offering free shipping is another
example of this.

Sephora uses the instant gratification tactic in their win-back


campaigns by offering a $15 reward on the user’s next
purchase, with a clear deadline of when the offer expires to
build a sense of urgency.

10
Starbucks

5. Create a sense of urgency

It should be no surprise that users act


on limited-time offers. It’s a
tried-and-true tactic, proven to work on
even the most lapsed users. 3

While conveying a sense of urgency is a


marketing fundamental, many
businesses fail to realize users can lose
the need to act when there aren’t clear
instructions on what to do next.

Rather than using vague language like


“act now” or “don’t wait,” tell users
exactly what they need to do when the
time comes. Don’t be afraid to outline
the steps they need to take to redeem
their reward.

No one likes it when their rewards expire. Starbucks uses this


as a way to evoke urgency to purchase a drink. But they don’t
stop there — they share exactly how you can take advantage of
your rewards before they expire.

11
JetBlue

6. Ask for their preferences

Too little communication and you get


forgotten. Too much, and you get
ignored.

If you discover that your users are


uninstalling because of too many
notifications or messages, you can tell
them that when it comes to
notifications, it’s not an all-or-nothing
deal. Remind them there are ways to
tailor their preferences, so they only
receive notifications and emails on
things they want to know.

The airline found a cute and play ful way to


give users options when it comes to receiving
emails. This puts the user in control of what
they want to get notified about and can
prevent them from hitting unsubscribe or
uninstalling your app altogether.

12
Purina

7. Send a reminder

Depending on what your app does,


reminders are an unobtrusive and often
helpful way to get users back in your
app. Not only does it alert the user that
“it’s time for more _ _ _ _,” but it also
keeps them from shopping around.

Send them a timely reminder to restock


a product they’ve purchased before or
refresh their memory by sharing an item
in their search history.

Purina sends friendly reminders to their customers to restock


their customized blend of dog food. This makes reordering
easy, encourages repeat orders, and builds brand loyalty.

13
ModCloth

8. Celebrate an occasion

Everyone loves a reason to celebrate.


Acknowledging your users’ birthdays or
anniversaries of when they downloaded
your app is a great excuse to extend the
olive branch. Add a discount on top of
that celebration, and you’ve got a
winning formula for re-engagement.

Here’s an example of ModCloth celebrating a user’s


Here’s an example of ModCloth “Modiversar y” with their brand by offering a $5 off coupon on
celebrating a user’s “Modiversar y” with their next purchase. A deep link is included so users are taken
their brand by offering a $5 off coupon on exactly where they need to go to redeem their offer.
their next purchase. A deep link is included
so users are taken exactly where they need
to go to redeem their offer.

14
Kate Spade

9. Request feedback

The most valuable feedback you can


receive is from your users — especially
the negative stuff. Not only does it help
you improve your service and products,
but it alerts you to issues you might not
even know exist. And sometimes, a
simple request for feedback and
promise to do better is all it takes to win
their trust back.

Feedback requests are often unanswered because users are


left wondering, “What’s in it for me?” Kate Spade offers a
discount for providing feedback, giving the user an incentive to
share their experience.

15
DSW

10. Learn to let go

Continuing to send emails to inactive


users is like keeping a never-worn
sweater in your closet. You’re positive
you’ll wear it eventually, but that day
never comes — and it’s taking up prime
real estate.

Instead of just removing inactive users


from your subscription list, prioritize
them. RFM analysis can div v y up even
your sleepiest users so you can see
who you still have a chance at winning
back.

Even for your hibernating users, it’s


best to send one last-ditch message to
see if there’s any spark left. If not, move
on and focus your efforts on the users
who still love you.

Ask your users straight up: is it over? This gives the users who
are uninterested a way out and the ones who are interested an
opportunity to engage further. Not to mention saves you from
obtaining an infamous reputation as a spammer.

16
The Do’s and Don’ts of
Win-Back Campaigns
While there is no right or wrong strategy for sending
win-back campaigns, there are a few tactics for making
the most out of them. Follow these best practices for
creating the most effective win-back campaigns and you’ll
be rekindling relationships with your users in no time.

Don’t Do
Be pushy: Don’t pressure your users into doing Be direct: Don’t overwhelm them with options. Provide
something they don’t want to do. You’ll get a one way a single call to action so it’s clear what you want them to
ticket to the Spam folder. do.

Guilt them: Don’t guilt trip your users into coming Test: Like with any marketing strategy, testing different
back to you. Keep the overall tone of the language strategies will help pinpoint which ones your users
positive, not negative. respond best to.

Be desperate: Don’t send dozens of messages Be conversational: Be playful and integrous with
begging for their business. Focus on the needs of the your users. Sometimes all it takes is a good chuckle to get
user. Find out why they left and make it right. users back on your side.

Treat them like a new user: When reaching out Personalize: Email campaigns that are tailored to the
to users who already have a history with your brand, customer are 26% more likely to be opened. 5 Know what
you can’t just go back to square one. Although the they did before they left. How active were they? Which
relationship is non-existent, acknowledge that past features did they use? The devil is in the details.
relationship to find out why it was severed.

Incentivize: Your users don’t owe you any thing. Incen-


Wait: Only 4% of users take the time to share a tivizing them to stick with you can be your key differentia-
negative experience with a brand on their own. 4 If tor when users are app shopping.
you’re waiting for a customer to complain, you’re
missing out on a lot more.

17
Ready to Start Winning Back Your Lost Users?
While acquiring new customers helps move the needle up and to the right, over time you’ll realize you’re just refilling a
leaky bucket. Retaining existing customers who’ve already engaged with your brand is more cost-efficient and effective
at increasing customer lifetime value and revenue.

Don’t wait to re-engage lost users. CleverTap’s analytics tools, such as RFM Analysis, Flows, and Funnels, help you
segment user data so you can build personalized win-back strategies that engage and retain lapsed users.

Schedule a demo to learn more


about how CleverTap can help you
win back and retain your
users for good.

Schedule a demo

18
Additional Resources
Ebook: A Quick-Start Guide to Automated Segmentation with RFM Analysis

Ebook: Preventing Mobile App Churn

Blog: Customer Win-Back Strategies to Redeem Relationships

Blog: How CleverTap Built an Effective Email B2B Win-Back Campaign

19
CleverTap is a leading mobile engagement and retention platform that helps brands maximize user lifetime
value. Over 8,000 apps — including Vodafone, Sony, Discovery, and Fandango LATAM — trust CleverTap to
improve user engagement, boost retention, and fuel long-term revenue growth. CleverTap is backed by
Sequoia India, Tiger Global Management, Accel, and Recruit Holdings, and is headquartered in Mountain
View, CA with offices in Amsterdam, Singapore, Dubai, and Mumbai. For more information,
visit clevertap.com or follow us on LinkedIn and Twitter.

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