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We are experimenting with Activation phase in our Mobile App and recently increased it by 40%, but Conversion Rate and Retention rate didn't change. Have you ever had similar cases? If yes, what do you think about the reasons why it can happen? And what were the next steps: 1. Did you try to improve this experiment with Activation in order to increase main metrics (for example we made just 'dirty' MVP for this experiment with Activation, so it can be a reason why it didn't increase other metrics)? 2. Or maybe did you try to completely change approach for experiments with Activation rate?

  • AA

    Anuj Adhiya

    over 3 years ago #

    There could potentially be a couple things going on.

    1. Whatever metric is currently associated with activation might not be the true activation metric.
    It should follow that if more people have a magical first experience, then more people should come back.

    2. If the activation metric is correct but retention rate hasn't changed, might mean that you have a leaky funnel, ie you are losing as many people in x time frame as you are activating.

    It may make more sense to analyze whether #2 is the issue and if yes, survey users that are dropping off as to why and see what patterns emerge. That will give you more information not only on overall value but what promise/expectation at the time of activation was not being met in future interactions.
    This then, will help refine your activation flow and metrics and should have a positive knock on effect downstream.

    • AB

      Andrei Baklinau

      over 3 years ago #

      Hey Anuj!

      Thanks for detailed comment.

      I will start investigating the first point that you mentioned because it really seems that we chose wrong metric for activation.

      Let me just a little bit explain our product, so we will be able to practically discuss this point.

      We are company Libertex.org that provides mobile (it's our focus) and web platforms for retail financial trading and we chose Opening First Demo Trade as an activation metric for demo users (we have demo users and real clients).

      But I understand that true activation happens when user opens first trade and gets profit, because it's final goal for each trader - to get profit.

      But...it's almost impossible for us to influence on it, because price of financial assets changes based on global trading activity, so some demo users can get profit after first deal while others can get loss. And the only thing that we can influence is real-time notifications (in-app, push, sms, etc) about profit. So we will be catching ~50% of users who has profit on active demo deals and drive them to fix profit --> truly Activate them (a-ha moment).

      So now you have much more information about our Activation problem and I will be so glad to hear your opinion and discuss it further.

      Thanks in advance)

      • AA

        Anuj Adhiya

        over 3 years ago #

        Thanks for the detail.

        So based on your description I don't think "Opening First Demo Trade" appears to be the correct activation metric to focus on.
        The reason for this is that simply making any demo trade is unlikely to communicate the benefit of the platform. Something specific needs to happen during this demo trade that does that.

        So I would argue that activation occurs when a user understands things like
        - how much easier it is to make a profit on your platform vs others and/or
        - that there is the possibility of making a bigger profit on your platform vs others.

        As part of this I would also think about reducing the variables in the demo so that the demo absolutely ends in a profitable trade.
        Once you know that end point, you can work backwards to adjust your demo flow that communicates the benefits as quickly as possible.
        Of course, to confirm that users that convert are experiencing the intended aha moment - survey them after the fact (and do the same for those that don't) to gain more information on how to iterate on this flow.

        Hope that makes sense.

  • AS

    Amitabh Songara

    over 3 years ago #

    The most important metric that every business must keep in check is retention because retention of old users is more important than acquiring news users. Old users are more profitable than new ones. Sometimes they become your social advocates and help you to get new customers.