WordPress focused on Referrals?
Must have 3 Retention metrics to monitor:
WHAT is Retention metrics?
Retention metrics measure how well your services keep your customers coming back over time. Think of it like a loyalty test - how many people visit your blog, promotions, updates. It's an important way to understand customer satisfaction and identify areas for improvement.
Retention metrics are a critical component of your sales analytics, offering insights into customer engagement and loyalty. By monitoring below metrics you will understand your customers behaviour. When you identify patterns, you can make data-driven decisions to optimise your services and avoid customer attrition.
WHY monitor Retention metrics?
Monitoring Retention metrics is important to understand what is working and what is not with your services, mostly from ROI perspective. By monitoring customer retention you identify what needs improvement or detect problems. These changes will keep your customers engaged and happy, and generates more positive feedback with increased revenue.
Monitoring Retention metrics is crucial for optimising your customer lifecycle. This allows you to identify bottlenecks, friction points, and opportunities for growth. With recurrent monitoring of your retention metrics, you refine your services business plan, you allocate resources more effectively. Vital for making data-driven decisions to drive long-term revenue growth, reduce customer acquisition costs, and improve overall business performance.
Advantages of reporting Retention metrics:
Recurrent monitoring and reporting Retention metrics you notice trends and patterns in customer behaviour, identify areas for improvement, and make data-driven decisions to increase customer engagement and loyalty. This helps you prioritise business strategy, allocate resources more effectively, and ultimately drive business growth.
Regular monitoring and reporting of Retention metrics enables optimisation of your customer experience, drive revenue growth, and increase customer lifetime value. When you refine your business plan constantly, you identify opportunities for growth, and detect early warning signs of declining customer engagement, ultimately leading to increased operational efficiency and improved bottom-line performance.
Retention metrics PRO Tips:
1st: Focus on monitoring the right metrics for your business, like as daily/weekly/monthly active customers (or seasonal comparisons). Define clear goals for improving retention based on these time-frames.
2nd: Always segment your customers to identify trends and patterns from different groups.
3rd: Use retention metrics to inform business strategy and prioritise promotions that will drive customer engagement.
4th: With a freemium model, you should monitor retention separately for free and paid customers.
5th: Use control groups and A/B testing to validate the impact of specific changes on retention. Never forget to consider the context of external factors (seasonality, market trends), when auditing your retention trends.
WordPress focused on Referrals?
Must have 3 Retention metrics to monitor:
When focusing on referrals with your WordPress website, by monitoring these Retention metrics, you will understand the effectiveness of your referral strategy, identify opportunities to improve retention, and optimise your referral program to drive user loyalty and growth.
#1 - Referral Rate
Referral Rate for a WordPress website focused on Referrals, measures the percentage of users who refer new users to your domain.
Why monitor Referral Rate? Monitoring Referral Rate shows how effective is your referral strategy and user loyalty.
How to monitor Referral Rate? Your Referral Rate can be monitored with any analytics solution, like Matomo. Simply, divide the number of new users referred by existing users with the total number of existing users. Then multiply by 100, to get your percentage.
How to improve Referral Rate? Improve Referral Rate focus on a fair, mutually profitable and transparent referral experience. Offer incentives for referrals. Tailor communication and explain the value of referrals to your users.
#2 - Viral Coefficient
Viral Coefficient for a WordPress website focused on Referrals, measures the average number of new users each existing user refers to your domain.
Why monitor Viral Coefficient? Monitoring Viral Coefficient is an important indicator of the exponential growth potential of your referral program.
How to calculate Viral Coefficient? Your Viral Coefficient can be monitored with any social media management solution. Simply, calculate the average number of new users referred from each existing user.
How to improve Viral Coefficient? To improve Viral Coefficient, refine and optimise your referral process. Offer rewards and bonuses for referrals, motivating for more engagement. Build and nurture a sense of community among users to encourage sharing.
#3 - Retention by Referral Source
Retention by Referral Source for a WordPress website focused on Referrals, measures the percentage of users who return to your domain based on the source of their referral, like social media, email, word of mouth.
Why monitor Retention by Referral Source? Monitoring your Retention by Referral Source is important because it shows which referral sources are most effective in driving user retention.
How to measure your Retention by Referral Source? Your Retention by Referral Source can be monitored with any analytics solution, like Matomo. Simply, calculate the retention rate for each referral source, separately.
How to improve Retention by Referral Source? To improve Retention by Referral Source, focus on optimising only top referral sources with high retention rates. Experiment with new sources to identify new sources and their effectives.
