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4 steps to increase LTV product through user communication

I’ll tell you by the example of Timepad (a service for event organizers), which earns commissions from ticket sales and upsales. Instead of some figures that cannot be found using external sources, there will be X , Y and Z , after all, the NDA :)

But first, key information to understand: Product Management affects performance through development, and Product Marketing (and I'm a product marketer) through communication with users.

Step 1: make a pyramid of metrics


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The pyramid of metrics is indispensable neither for product managers, nor for product marketers. With its help, you can sort through all the indicators that affect each other, and ultimately on LTV. Below I have prescribed the top and middle level metrics, and you can see the pyramid of metrics that we made by our team on this link .

Top level metrics


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The key indicator for us is LTV. To calculate this indicator for the organizer of paid and free events, we identified 3 variables similar to the formula with the basic formula:

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In our case, these are:

  • Conversion from registration to sales achievement
  • ARPPU or average bill from a paid event
  • Retention of paid events or how many average events are paid by the paid organizer

It is important to understand that the organizer can create a free event without paying a penny Timepad. That is why our LTV depends on the organizer of paid events.

Mid Level Metrics


Let's see which basic metrics (because there are many more other metrics) affect mid-level metrics.

1. The conversion from registration to sales. We calculated this indicator for 2019, using as an identifier for the occurrence of an event, we selected a set of events: receiving 3 confirmed sales worth at least 50 rubles, each transaction of which was made from a non-repeating email.

In our case, this metric is affected by:

  • Conversion from registration to creating any event
  • Conversion from the organizer of free events to the organizer of paid
  • Conversion from a free event to a paid one

2. ARPPU c paid event , which is affected by:

  • The average check for the events of the organizer
  • Number of participants in paid events

3. Retention of paid events . This metric is affected by:

  • Recruitment of the planned number of participants
  • Reducing dumps after an n-event
  • The return of those who held the event and no longer

Allocated - good. Now we describe how to influence these metrics.

Step 2: prescribe ways to influence mid-level metrics


Timepad has been on its way since 2008, today it is a developed product with a huge number of features with which we increase the organizer LTV, and communications that prompt the user with the right solutions. Therefore, for each mid-level metric that affects LTV, we identified 39 new, not quite superficial ways of influencing. Only a few are listed below.

We increase the conversion from registration to sales




Internal data :

  • X % of the organizers (recall, the data is hidden by the NDA) do not reach the event;
  • Y % of the organizers, according to our survey, which takes place after the first event, find that they understand only the main points are clear, but not the details;
  • 4th place in popularity among churn-factors, according to another poll, is “Did not understand the service, experienced problems in navigation”.

For these and other reasons, we understood that a well-calculated part of users can be influenced through communication with the goal of increasing the conversion from registration to sales, and therefore we have affected this metric.

1. Email onboarding, activation and return




External sources state :

  • in the 3-4 opening performance and clicks in a welcome letter than in a standard mailing - which is why they are so important;
  • 19 23 , - -.

Therefore, we introduced a chain of 40 letters, each letter that adjusts to specific conversions by the user. Created the first event immediately after registration - beautiful! We will show you how to publish it and start selling. I didn’t create it during the day, well, we’ll give you a checklist on how to do it best. Did not create for three - recalled again. Created - publish, and if you forget, we will remind you.

Life hack : if you ask the user before which event he wants to create (paid, free or the option “just testing the service”), this can fine-tune the content of emails so that the output from registration to creating a paid event increases by 40 %! Actually, we do so.

2. Chatbot for those who choose paid registration


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Other external sources state :

  • 63 % of respondents prefer to chat with chatbots to communicate with the brand;
  • chat bots will provide 85 % of customer service by 2020;
  • 80 % of enterprises want to introduce chat bots by 2020.

Our internal data says: X % (data is hidden) of the organizers creates a paid event (which is about Y per month) and these people are the main financial source of Timepad.

And if so, we considered it necessary to enter chat only for those people who created a paid event, and thereby form a sales reach from their events.

Increase Organizer ARPPU


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Internal data:

  • on the X place for reasons of dumps is the non-collection of the planned number of participants;
  • Y % of those who chose paid registration reached at least 50.01 rubles at the first event;
  • Z % reached an average check of 50,000 GMV at the first event.

3. Personal guides after event creation




According to EmailMonks :

  • to 3 times better personalized emails based on behavior than conventional batch email;
  • 63% of consumers are very annoyed with too general advertisements;
  • 80% say they are more likely to communicate with the company if it offers a personalized experience.

Internal data:

  • , , X ;
  • , 5 , 2X .

And our task: to help him recruit these 5 participants in order to bring his user closer to the aha-moment.

Solution: give educational content. And since none of our team members created events on their own, we could not guide our organizers and provide useful content for their categories. For business conferences - one thing, for webinars - another, for theaters - the third. Therefore, we created draft guidelines for promotion and monetization, and sent it to those who, in the framework of the selected cohort, created an event for at least 10 people over the past 3 years, and asked to supplement this guide with their own methods.

Result: each new user receives clear and already fully formed best practices for each cohort.

4. Focus on the blog as an educational center




External data from the Content Marketing Institute says:

  • to 126 % more growth get a small business that has a blog, than those who do not have it;
  • to 6 times a content marketing increases conversion rates compared to other methods.

User activation is a great thing. But still you need to understand that this is not our goal. This is the goal of the client, and we need to help him with knowledge, cases and inspiration.

This is especially true of the sphere of event organization, this is a very knowledge-intensive occupation. You need to have knowledge in order to not only create an event over and over again, but also to make money on it. That is why we made a huge emphasis on the blog, which, according to analytics, is visited by 30% of our users before they create their first event.

We increase the returnability of the paid organizer


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Internal data:

  • Clients between the 1st and 2nd event are the largest dump point;
  • X % of clients stop holding events after the first attempt, that is, they avoid aha-moment.

5. Omni-channel instead of multi-channel


To begin with, about the difference between concepts from each other:



According to data on brands from external sources that use 3 or more channels in the automation workflow, they have:

  • 18.96 % level of involvement on a multi-channel channel versus 5.4% on a single channel;
  • 250 % higher purchase frequency for multi-channel compared to single-channel;
  • to 13 % more have an average value of zakazaza order for multi-channel communication, than a single channel;
  • to 90 % higher levels of customer retention for multi-channel compared to single channel.

When I came to Timepad, the main tools for communicating with the organizers in Timepad were emails, site pages, and pop-ups. They all rained down on the user almost immediately. However, all this information was not streamlined; there was no system in it. Therefore, we wanted to introduce alerts consistent with each other:

  • the right message;
  • at the right time;
  • on the right channel.

As an additional channel, we chose sms, push notifications in the browser, banners in the admin panel and CarrotQuest.

6. Paid advice on attracting participants and organizing events




For those who did not reach the planned sale of tickets after the first event, we began to offer paid consultations through a special button in the admin panel or by clicking on a banner. This is both an opportunity to earn money and an attempt not to lose the user.

7. SEO-optimization of event pages




300,000 participants access Timepad precisely through search engines, which is only 1/10 of all traffic. Assuming that we can help the client bring more customers more through the SEO capabilities of the service, we conducted an audit, which measured: that we can bring customers more than 300,000 - 600,000 members per month . Therefore, we found a contractor and began work in this direction.

8. More precise instructions on how to get to the “ Poster ”


Internal data:

  • the survey showed that many organizers create events just to get to our Poster, perceiving Timepad as an opportunity to get free traffic;
  • 80% of users who could not find the answer leave us forever, leaving a negative.

And since for us a clearer explanation at the early stage, how to get to the Poster is an attempt to keep such users, we decided to compile a very clear guide on this topic across all channels, even in the Poster section itself.

9. Building a community of organizers


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One of the strong ways to maintain customer loyalty is through their involvement in the community. Therefore, I proposed to build a plan for the development of community management and prescribe channels, which the whole team then approved.

10. Recycling the Help section


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Internal data:

  • when a user asks how to work with Timepad, he addresses in 40 % of cases in help in 15 % support;
  • at 3/7 Articles HELP negative evaluation more than positive, ie almost half of the readers of the article do not receive an answer to your question.

We calculated that more than 17 % of users, finding no answer and seeing a negative rating, stop using the product. Therefore, we needed to change the section, namely the navigation and content in it.

Bonus methods


In addition to these 10 methods, I would like to highlight some more interesting ones that we tried:

  • The introduction of the basic thesis in all communications that only serial events generate income, not single
  • Cutting off unnecessary and bottlenecks in CJM, which the user passes before the creation of the event (the products took over)
  • Optimization of the conversion of the event page (the products took over), with the help of which the organizers can attract more participants

And all these methods more than work.

Step 3: prioritize the ways


After we identified all 39 ways, our team went into departments.

  1. Analysts have given a forecast: what will happen to LTV if the specific metric that the efforts are aimed at changes by at least 1%.
  2. The development gave a forecast: how long it will take them to integrate services into the product.
  3. We also made a forecast: how long it will take us to use all these methods.
  4. The data were entered into a table and sorted by the indicator “ruble of profit / hour of development”.

According to the data received, 20 out of 39 methods were taken into development , and the remainder was put back into the backlog until better times.

Step 4: development and evaluation


Further, the development helped us with setting up the channels for delivering information, there was a partial release, analysts muddied the A / B test.

Total


In 20 % of the users on whom the experiment was conducted, within 60 days after the partial release, we saw a 10% increase in LTV. And this is only the beginning, because LTV is a cumulative thing, and in our case - especially (after all, some of them create events once a year, and we can see the effect not earlier). According to our forecast, the final increase will be about 30%. This can be finally verified at least at the end of 2020.

Let's do it again. Without affecting either the code or the product, but only on communication with the user, we can increase revenue from the client by 30 %. And that means you can.

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