Mona Gandhi, founding member of the growth team @ Airbnb spoke at the ProductGeeks Conference 2018 on how to embed virality in a holistic manner within a product.
In this part of her talk, Mona talks about how to fix churn without burning a hole in your pocket on acquisition.
a. Do not straightaway look to spend more money on your ad campaigns or time on optimizing them if your retention is low. Examine whether it is the bucket that is leaky i.e whether there are flaws in the product causing users to leave. Fixing that is more crucial in the long run. As a startup, you’re unlikely to have a lot of money to burn.
b. Once some of the problems within the product causing the low retention are addressed, teams can go full throttle on the top, mid and low end of the funnel to push the product. This is a much more balanced strategy.
c. By overspending on the top of the funnel via ad campaigns, cashbacks and other incentives without addressing the problem of the leaky bucket, you may continue to show good numbers when it comes to growth – but your unit economics will go for a toss. This, combined with low retention, will make for very bad reading to investors and stakeholders.
We will be sharing more of Mona’s talk going forward. Please subscribe to the NextBigWhat channel for more such product insights. And make sure to check out the site often for updates.