Articles

Analysis Strategies in Each Stage of AARRR - AA

Written by Jepson Du (Jiaping Du) 杜嘉平

The article is directly translated by Google Translate from Chinese, the English version will be improved very soon.

The AARRR model in the market is a classic growth funnel model. Each process of the model runs through the entire process of a product from acquiring customers to acquiring customer value. It is a good tool for studying digital-driven marketing and product operations. The AARRR model is not systematically explained here. If you want to understand the AARRR model, please refer to: https://www.goneon.lu/aarrr-framework-pirate-metrics-to-grow-your-business-online/

What we are going to discuss today is how we should improve the performance of each stage in the various stages of the AARRR model, and how we should save the abnormal indicators. Explore the coping strategies of each stage of the AARRR model from the landing action .

Acquisition user acquisition phase

From the perspective of landing strategy, we do not discuss many marketing-related content such as advertising. Today, we start from ourselves and explore how to improve the performance of user acquisition through both the product itself and product operation. If you are interested in advertising and delivery, please refer to the article I wrote before: Advertising and Marketing in the Data Age

Product perspective

From a product perspective, the most direct way to improve customer acquisition efficiency is to lower the threshold for product usage, because this can reduce traffic loss caused by interruption of product experience. Several strategies to lower the barriers to use are: simplifying the registration and login process, subsequent authorization, and a moderate novice guide. The strategy of simplification of registration and login is fully realized on current Internet products. Users no longer need to perform complicated registration procedures to use the product. Even many Internet products hardly require users to register to enjoy their internal basic services. Simplified registration and login contact delays are both strategies that can improve customer acquisition from a product perspective.

In addition, delayed permission authorization is also a product-based strategy. Many times we will be disturbed by the permission authorization pop-up window. After interference, our linear experience of the product will be broken, causing users to withdraw from the product before they feel the value of the product. It is inevitable. Therefore, it is also very important to try to authorize permissions later to avoid interference of user contacts in the early stage.

Novice guide. This strategy is most common in products such as Internet game products that are more complex and costly for users to learn. The novice guide can guide users to quickly understand the core functions and product value of the product, and leave a positive direction for users as much as possible. First impression. However, it is also very important to grasp the complexity of the beginner's guide. It is necessary to consider the patience and tolerance of the user for the beginner's guide.

Operational perspective

From an operational perspective, in different stages of the product's experience, different operational strategies can also improve user acquisition. The life cycle of a product will go through a cold start period, a growth period, a stable period, and a recession period. At each stage, the business indicators and operating methods that product growth focuses on are different.

In the cold start period ( introduction ), just like the name of the stage, the most important thing in this stage is to introduce the product to let more people know the product, that is, the number of users is our focus indicator, not the quality of users. Therefore, we hope to obtain the first experience of the product by the seed users quickly, and optimize and polish the product through the feedback of the seed users, so as to attract more customers.

In the growth period ( growth ), after the cold start period, the product is polished by seed users. At this time, the product should have a certain universal value and have undergone market verification. At this stage, it is to find a large number of target groups Stage , that is, user quality . Note that what is mentioned here is the target group, that is, the matched user market. At this precise delivery channels, accurate delivery crowd becomes a top priority, and we very much hope that through event marketing, word of mouth marketing, KOL camp to attract target customers and other sales channels admission, so that more fitting users to use the product. At this stage, we should pay attention to ROI , and strive to use the most optimized channels to acquire high-quality users.

In the stable period ( Maturity ), the product has become very mature, which will cause the user scale of the product to reach a bottleneck, and the market will temporarily become saturated. This is the second spring of product operations that should start to consider expanding the target group to find new market opportunities, so that new growth can be achieved and new user groups can be occupied. In addition to expanding the group for growth, it is also very important to retain the existing users before. This is the retention rate (user retention) becomes an indicator that needs attention. During the stable period, all operational activities need to be guaranteed in the old age. The user is not deactivated, or under the premise of stable retention.

During the decline period, the decline of products often changes with market changes. When alternative products appear in the market, the company’s own products will definitely face the loss of users. Therefore, at this stage, the loss of users ( Churn ) It is an indicator that requires attention. What needs to be done in operation is to predict the lost users in advance and recall them in time , so the recall rate is also a very important indicator of concern. Recall prediction, by the way, here is a classification model established by using user behavior data as an independent variable and whether or not churn is a dependent variable. The classification model trained through partial historical data can predict the churn probability of potential churn users, so as to identify users with greater churn risk for recall intervention.

There are three recall methods:

  • Profit-driven: For example, the platform's activities for issuing discount coupons is a recall of benefits. (Tonight only enjoy UberEat to recall me and gave me issuing a full 20 knife minus 1 0 knife Pickup coupon )

  • Social drive: The new personal attention, the substantial increase in the number of fans, and the active interaction of friends can all become a means of recall through social drive.

  • Stimulus-driven by new features: It is well understood that the introduction of a new feature in a product will definitely attract users to return to the product to find out.

The above are some of the improvement strategies in the user acquisition phase , which can be dealt with separately from the product perspective and the operation perspective. Find the most suitable strategy in the different phases of the product and focus on the most suitable indicators, and the user acquisition phase can be well operated.

Activation user activation stage

After the user acquisition phase , it will come to the second phase: user activation. In this activation, part of the customers we have acquired will be activated and become real users of the product, and then there will be another part that is not activated, resulting in loss. So in this link, what we need to pay most attention to is how to enable more users to be effectively activated , so as to bring more effective real users to the product.

Activation is a very abstract word. I want to talk about what activation is. Many people think that activation is registration. I think it is completely incorrect, because the performance of a real user of a product should be to feel the true value of the product and be willing To use the core function of the product (that is, the point of expression of true value) . When a user completes the use of core functions, I think it is a real active user. To give some examples, for Baidu APP , a certain number of searches per day after registration is the real activation. For Douyin, completing a certain period of short video viewing every day is still a real activation. For Guoqiu Di, browsing a certain amount of news every day is the activation.

Therefore, how to define the activation standard in the activation phase is a very low-level and important thing. If the user's activation cannot be measured well, then the optimization of activation may bring little benefit to the enterprise. Different product types have different activation standards, so different activation standards will also bring different activation strategies. Next, three products will be used to illustrate the corresponding activation standards and activation strategies.

Single user product

A single-user product is a relatively independent product. It does not require any intervention by a second user to enable the user to use the product smoothly . In single-user products, tool products and games are the main products . The simplest tool products are calculators, and the more complicated ones are editing software and shooting software. User activation in the withdrawal of tool products is obviously to complete the use of the tool and solve the user's problem. In order to increase activation, lower the threshold of use, and let users know the operation method at a glance is the principle of product design. For game products, whether it is a single-player or multiplayer game, users want to experience the fun of immersing games in this product, so quickly letting users be satisfied with game rules, operation modes, and satisfaction is a big key, so in the activation part The novice guide mentioned once again played a role in promoting activation

Multi-user products

In fact, they are social products, which are divided into acquaintances and strangers. The key to activating users of this type of product is of course to quickly allow users to establish links with other users in the product . If there is no way for users to find "partners" quickly, then the product will naturally lose value in the hearts of users, resulting in loss.

Give two examples, one positive and one negative: Bullet SMS was vigorous in the early stage of marketing. Through Luo Yonghao’s promotion, a large number of users registered the product at the first time, so Bullet SMS was very smooth in the customer acquisition phase, but problems appeared. In the activation stage, it is difficult for users to find acquaintances in the product. The way for everyone to obtain acquaintances is still to get acquaintances to register by taking screenshots of their bullet SMS QR codes in WeChat Moments. This method is clumsy and inefficient. A positive example is of course WeChat. WeChat uses QQ and the address book to flow backwards so that a large number of users can be used to obtain and activate smoothly in the early stage, making user matching very efficient. Therefore, for social acquaintances, acquaintances from other channels are used to attract traffic and quickly get connections between users is an important part of activation.

Social products for strangers mainly need to solve the problem of user matching. How to let two users find each other at the same time is the core issue to promote activation. I have also worked on social entrepreneurship products for strangers before , so I have a better say. There are two strategies for stranger social matching:

  1. The navy strategy puts a large number of virtual users on the platform, creating the illusion of a large number of alternative matching users and creating false user demand scenarios. But low-quality virtual users will make users resist, so the development of artificial intelligence in the future will greatly target the low-quality problems of virtual users, so as to better improve activation.

  2. Matching strategy, which is to match and recommend users through algorithms . It is a good strategy to actively recommend suitable online user strategies to users and let unfamiliar users connect directly and passively.

Multi-role product

Multi-role products mean that the user of the product is not just a role. For example, Didi Taxi, the role of the product is the driver and passenger respectively; the role of the product on Taobao is the buyer and seller; the role of the product on the takeaway platform is Diners, restaurants and riders. Therefore , the key to this multi-role product activation is the balance of supply and demand among multiple roles . Take Didi Taxi as an example. If the driver does not see the demand of the ride-hailing users, then the driver 's demand for the product will decline . Similarly, if the passengers always cannot get the taxi, then the passenger's demand for the product will also decline. Therefore, a balance between supply and demand among multiple parties is very important for the activation of multi-role products.

For multi-role products, we should pay attention to key indicators

  1. User activation rate: the percentage of users who have used core functions to the total users. Of course, the activation rate is subdivided by different roles to identify the problematic role to make up.

  2. User activation time: the length of time from entering the product to completing activation. The shorter the activation time, the better the activation effect. The difference between different roles can also be identified from the perspective of multiple roles and the shortcomings can be solved.

  3. DAU/ MAU : This indicator is the withdrawal of user stickiness. Different products should set up different benchmarks. If the benchmark is exceeded, it means that users are sticky , and if it is below it, it means weak.

  4. DAOT : Users use the market on average, and the longer the time, the stronger the stickiness. This indicator is more effective in content-driven products , such as Taobao.

To sum up, the activation stage is the first step for the product to truly transform the number of users into user value. Through different product types, allowing users to quickly see, feel, and enjoy the product value is the most essential way to promote activation. .