[Huawei Developers] John Wo:
Why is the user churn rate so high?

How can I prevent user churn?

How can I maximize the value of retained users? All are common challenges faced by app operations teams.

This means that increasing the user retention rate by just 5%, can lead to a staggering 95% increase in revenue. Therefore, operations work is largely dedicated to retaining users and maximizing their value.

How to detect user churn risks in a timely manner and formulate a targeted user operations strategy? As user acquisition costs have increased, many enterprises have adjusted their operations strategy from extensive traffic diversion to refined operations. However, this new paradigm has led to new challenges related to user retention, and "bottleneck" effects that can hinder payment conversion rates. That's where HUAWEI Prediction comes into the picture.

What Is HUAWEI Prediction?

HUAWEI Prediction anticipates the precise target audiences, by utilizing machine leaning technologies that harness the data-driven user behavior and attributes analysis in HUAWEI Analytics. The service can accurately predict churned users, paying users, and return users, providing invaluable insight on your app's user base.

1. Predicting Churned Users

For many companies, user operations are simply a repetitive cycle, which consists of: defining users who have not signed in or made any purchases over a specific period of time as churned users, strategizing to win them back, and pushing messages or sending SMS messages to reach them. These actions can be reckless, as the causes of user churn are not yet clear, and simply delivering coupons or specific messages is insufficient, and can even backfire. Users have grown accustomed to ignoring messages that they receive from apps.

Effective strategies for retaining users

Rather than dedicating painstaking effort to win back churned users, it would be far better to predict user churn in advance, so that you could take proactive measures to retain users who are at risk of being lost. For example, if a user has been active over the past week but is predicted to be inactive or to uninstall the app, they will be defined as having high churn risk. Then it's a matter of identifying common attributes for such likely-to-churn users (device model, location, etc), as well as identifying metrics (recent app usage, total page views, etc.). HUAWEI Prediction mines the vast array of available data for you,and applies its in-depth insights into likely-to-churn user behavioral characteristics, so that you can adjust your operations strategy in a proactive manner, to reach them more effectively.

2. Predicting Paying Users

2. Predicting Paying Users

Product monetization capabilities are important in determining whether a product will be successful in the long run. In recent years, apps have tried a wide range of promotional activities, such as free service trials, membership benefits, coupons, joint membership models, and even online & offline promotions. The ultimate goal of all of these costly operations is to get users to pay for services.

Methods for boosting the payment conversion rate

First, it's important to target the audience that will make payments in the future. For example, you can use user payment data from the previous two weeks to build a model, and use the model to predict the probability that active users from the past week will pay fees in the following week. This enables you to conduct refined operations that target these specific users, such as optimizing the product purchasing experience and sending discount coupons.

HUAWEI Prediction is designed to do just this. It obtains insight into user behavior to predict audiences that demonstrate a high payment probability, and identifies the detailed attributes of the audience, such as the geographic and device model distributions. You can then use this high-level analysis to allocate resources in an optimal manner, thereby ensuring that the payment conversion rate is maximized.

3. Predicting Return Users

Due to high costs of acquiring new users, extracting full value from all existing users throughout the entire lifecycle, and winning back former users are all key to turning a profit. A satisfied user will repeatedly use your service, and conduct new transactions on a regular basis. A higher return rate indicates greater user loyalty, and loyal users can help bring in new users.

How to attract users to return for purchases?

Just like with predicting paying users, predicting return users can help you boost payment conversions from paying users on a continual basis, with targeted operations actions. Users who have been more recently active are naturally more likely to make payments. You can thus set a condition for users with a high return possibility, as historical paying users who have been active over the most recent week.

HUAWEI Prediction can help you make accurate predictions, which enables you to formulate precise marketing strategies to target specific users, and then see these strategies through, whether this involves pushing greetings to existing users, or configuring discount packages for members. Relying on such data-driven operations can lead to outsized benefits, in terms of both payment conversion and user loyalty.

How can I enable HUAWEI Prediction?

To enable the Prediction service, simply click Enable now on the service page.

HUAWEI Prediction is dependent on the user behavioral data and attributes reported by HUAWEI Analytics Kit. Therefore, before enabling the Prediction service, you'll need to enable HUAWEI Analytics and integrate the Analytics SDK, to ensure that enough events are reported to support the execution of prediction tasks.

For details about the integration procedure, please refer to the following documents:

Android:

https://developer.huawei.com/consum...tegrating-sdk-0000001050161876?ha_source=hms1

iOS:

https://developer.huawei.com/consum...tegrating-sdk-0000001050168479?ha_source=hms1

Web:

https://developer.huawei.com/consum...tegrating-sdk-0000001051065743?ha_source=hms1

HUAWEI Prediction helps anticipate potential user behavior in advance, providing in-depth insight into target users, and facilitating the efficient allocation of resources, to create maximum value.

For more details about HUAWEI Prediction, and how to get started, please refer to our online materials.