The value of the product is a measure of the satisfaction of user needs and the long-term value of the user. The conversion cost includes the time and money invested by the user in the old product, grade honor, social relations, etc., as well as the difficulty of using the new product.
When faced with alternative choices for users from competing products, on the one hand, it is necessary to improve the experience and value of its own products, and on the other hand, it is necessary to make use of switching costs. Investment and participation increase user conversion costs.
02 The way of thinking of user retention: value and cost
After it is clear why users are retained, it is much simpler to discuss how to retain users:
Products meet user needs and provide users with long-term value to retain users? Then let users use the product in depth, develop usage habits, and better experience the value of the product. Measure the value and conversion cost of alternative products, and there is no better choice to retain users? Then let users continue to invest, generate more country email list sunk costs, and increase switching costs.
Let's talk more specifically.
1. Perceive product value and form usage habits
There are three ways to make users better perceive the value of a product:
Increase the frequency of use of core functions
Increase the user's product usage time
Expand the user usage scenarios of the product
The core function of the product is the main way to meet the needs of users, and it is also the best reflection of the value of the product to users. Let users use core functions more frequently, cultivate user cognition and habits, and directly promote user retention. In addition to the improvement of core functions, friendly newcomer guidance, direct use of entrances and paths are specific ways to increase the frequency of use of core functions.
Increasing the user's product usage time can increase the user's familiarity and use of the product, and through appropriate non-core functions and personalized short-term activities, the user's product usage time can be better improved. The community functions of sports and fitness products and the development of games for e-commerce products are all ways to increase user usage time and promote retention.
As for the user usage scenarios of expanding the product, on the one hand, it is to meet the needs of users in various scenarios. Users can use the product in different scenarios or when they have different needs. For example, Lagou Recruitment provides recruitment services and vocational education The course is to meet the various needs of users for job hunting and growth. On the other hand, it is to increase user contacts, which is also one of the basic logic of private domain traffic. Apps, web pages, WeChat applet, etc., multi-platform and multi-touch users The difficulty of retention is also reduced.
2. Increase conversion costs and build user assets
In existing products, switching cost mainly refers to the sunk cost caused by user input, and increasing the switching cost means increasing the sunk cost of user input.
Sunk cost is an economic term that refers to costs that have occurred in the past but are not related to current decisions. It is now often extended to various fields such as psychology. However, the statement that sunk cost has nothing to do with current decision-making is based on the assumption that people are "rational people". In reality, people always consider sunk costs when making decisions: the longer the relationship is, the more unbearable it is to break up, and the years of youth and affection will be in vain; The more krypton gold, the more difficult it is to quit the game, what a pity for so many equipment skin titles.
The sunk cost of the user's investment in the product includes: time cost, money cost, social relationship, grade honor, etc. The more users invest, the higher the sunk cost of churn, and the less likely it is to churn.
In practical applications, in addition to the more active investment of users, users should be guided to invest more through the user growth system (points, grades, membership), friend relationship mechanism, etc. Perceived that there is already a lot of investment in the product and there is a certain return, allowing users to have their own assets in the product, the annual summary, grade identification, etc. are typical "investment externalization" methods.
3. Hook addiction model, retain the ultimate goal
The ultimate goal of making a product is that whenever the user has a need, the brain directly takes the shortcut of thinking, uses it naturally, and forms a usage habit.
The Hook addiction model is a theory put forward by Neil Eyal and Ryan Hoover, which is elaborated in their book "Addiction: Four Product Logics for Users to Develop Habits", and it also has implications for user retention. Great reference value, using the Hook addiction model from the product level to cultivate user habits is an ideal state for user retention.