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Ask GH: At what point do you determine that an active user has become inactive?
Aside from users canceling their accounts, when do you determine that they've become inactive? Mostly interested in concrete examples since every service / product is different.
When I worked at an online ticket ecommerce company we defined active or activated as making an offer on tickets (it is like a Priceline for live event tickets).
After we acquired you, our goal was to get you to make an offer (not necessarily a successful offer mind you) within 30 days of signing up. Otherwise you were inactive to us.
If you made an offer, we wanted you to make another offer within 60 days of that offer to keep you defined as active.
To help define this, what we did is identify what activity was the main lever for becoming a successful long term profitable customer. To us, it wasn't actually making a purchase. That was too far down the funnel. We found that those people that make any offer were far more likely to buy in the future, refer friends, buy multiple times, etc. So we geared everything around that.
If you were coming up on 30 or 60 days w/out an offer we designing special incentives to reactivate you or "save" you before hitting those milestones.
What we did is looked at cohorts of successful/profitable customers and their behaviors against inactive/unsuccessful customers and tried to identify the variables that were different between the two populations.
Then through some data crunching arrive at what the strongest signals were, which in that case was the offer itself.
Hope that helps.
Thanks, that's exactly the kind of example I was seeking here.
At my current company (we do online groceries delivery) we consider active users anyone that has placed an order in the last 4 weeks.
We still need to get more scientific about that, but the reasons behind it is that our ideal user orders once a week, with people sometimes stopping for 2-3 weeks because of travel.
We feel that 4 weeks is a good period to assess if someone has lost interest or forgotten about us. When someone reaches this category we then start a process of user reactivation, with a call, offers and some emails throughout time.
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