The most important step 🔑
Many people get this wrong...
You can listen it, up here:
⏳ Current status
👥 Active users: 1391
📝 New Improvements: Integrating Onboarding 👟
💭 The big question
What's more important for a business?
Getting new customers or keeping old ones?
This is the answer almost everyone gets wrong. We think it's good to have a constant flow of new customers. Meanwhile, this is not entirely true.
I'll show you why with some simple math!
📝 "Napkin Math"
💡 Side note: Napkin Math is the term for the concept of trying to simply deduce something on the back of a napkin so that the other person understands it.
Let's assume:
👥: We have 100 members
💰: 1 month 4.000 HUF
🗓: Every month I lose 20 members because they cancel
In case "A", I'll get on the customer acquisition and bring in 25 members per month:
Month 1 = 100-20+25 = 105 members = 420,000 HUF
Month 2 = 105-20+25 = 110 members = 440,000 HUF
Month 3 = 110-20+25 = 115 members = 460,000 HUF
In case "B", I focus on retaining customers and lose 0 members per month and only gain 10, so less than half the amount of the first case, then:
Month 1 = 100-0+10 = 110 members = 440,000 HUF
Month 2 = 110-0+10 = 120 members = 480,000 HUF
Month 3 = 120-0+10 = 130 members = 520,000 HUF
And this adds up significantly in the long run.
This was an infinitely simple example, but I've brought you some more interesting data on this topic.
Getting a new customer cost on average 5x as much as keeping an old one.
If you can increase retention by just 5% it can increase your profits by 25-95%.
The chance of selling a new product to an existing customer is 60-70%, the same for a completely new customer is 5-20%.
📚 Lesson: It is much more important to devote time and energy to retaining users. And we can do this by providing them with better and better content, by developing a more and more convenient App and by trying to provide better and better customer service!
📕Book recommendation. 1000 Real Fans - Kevin Kelly, of course it's on BookBase (14 minutes 🎧) The book itself is about how you only need 1000 fans to live well for the rest of your life. It shows concrete strategies on how you can get those 1000 "fans".
👋🏼 Onboarding
After We realized this, we decided to lay on Optimizations, as I said in my previous letter.
However, the biggest step after Optimizations is Onboarding!
- But Kristóf, what the hell is Onboarding?
Onboarding is the phase when you first download an application and open it. It goes all the way until you get into the App, so registration is part of it.
And you might be asking:
- What does this have to do with retaining people?!
There have been a lot of studies that have been done on the value of the App and what it should be used for. Then it can increase retention by 30-40%.
We had to realize that our Onboarding was not the best, as we didn't show anything from the App but asked long questions...
But that's about to change, because Kokesz really liked this mini project and has immersed himself in the psychology of Onboarding!
💡 Side notes 2: You know marketing 2 is based on psychology and behavioral science 😉
He looked through 17 Top Apps for Onboarding and from that he created our own, which he then had 30 people try out.
He then tweaked and refined the process until the "Masterpiece" was born. 🎨
We are really starting to catch up with the really big league!
(Headspace, Duolingo, Mimo)
📚 Lesson learned: design plays a very important role in the judgement of an application. Therefore, besides being psychologically well built, it should also be nice and good looking. Although we have an easy job with Kokesz, but if you want to make your own App, you should take this into consideration.
🔥 Challenge
One of the biggest CHALLENGE for us right now is to find a person who can do ASO (AppStore Search Optimization, in short, as much as possible to optimize our AppStore and Playstore pages to get more people to download BookBase).
I bought highly the best book on this subject 600 pages long, but had to admit that I won't have time for it. Let's be honest... it's not even my forte.
So, if you happen to know someone who does this, don't hesitate to write me on Instagram right away! 😉
📖 What have I read now?
I listened to Derek Sivers - Anything You Want in an abridged version. Derek Sivers is a very inspiring personality on the web. I've read „How to Live” by him before and it really resonated with me, so I thought I'd check this one out too. This book wasn't bad in short version, but it didn't provide that much new. It's basically about starting a business, but it was a bit elusive for me. His other book is much better, that will be on the App soon!
🎧 What have I listened to now?
I was listening to a podcast just now where William Zinesser was the author of the book "On Writing Well". Actually, the title of the book says it all, it was about how to write well and clearly. Now for some reason I'm intrigued by this topic. Because if I'm going to do something, I like to do it well! Here's this newsletter, if I'm going to write for you, at least I should write well and not bore you with it!
I listened to Iman Gadzhi's new video on the Digital Renaissance, where he talked about how masculinity is being trampled now and how people are being randomly banned (Joe Rogan, Jordan Peterson, etc.) He compared the current situation to the Dark Ages. The message of the video wasn't bad either, but I really liked the style. I also talked to Geri about the fact that we should be producing mini-docs like this from next year, because it sounds exciting.
✍🏼 Top quote
"The really great wealth is not in great riches, but in little desire."
~ Epictetus