Customer acquisition costs are on the rise, forcing marketers to think more about retaining the users they’ve already spent mightily to obtain. But to keep your customers, you need to understand them. CleverTap CEO and Co-founder, Sunil Thomas, advises app marketers to go beyond demographics to understand what motivates customers to take action. He says, “marketers need a framework that will allow them to develop a more nuanced view of customer engagement and take action long before key metrics head south.”
Thomas points to retention data from mobile analytics and attribution provider AppsFlyer (2019 App Trends Report), which finds that just 13% of users still interact with an app by day three after the install, marking a critical period when re-engagement efforts could deliver significant business benefits. In other words, there is no time to waste. Retention efforts need to begin almost as soon as you’ve won a user.
RFM (recency, frequency, monetary) is a behavioral segmentation framework that looks at customer activity to determine how recently and frequently someone performed a key action, and Thomas believes it is the key to retaining your users. It also measures the monetary value of the action to help marketers calculate customer lifetime value and make a call on whether campaigns to re-activate a customer is money well spent. Insights into how and when customers interact with a brand or engage with campaigns empower marketers to enhance the customer experience when, where and how it counts.
Take a deeper dive into how RFM can help you reframe how you think about your customers—and make sure they stay customers—in the original article at AdWeek.
(Editor’s Note: CleverTap is a Mobile Presence podcast sponsor and MobileGroove supporter.)