Introduction

I still remember my first day as a product analyst. I walked in, expecting a smooth introduction to the company, guided by my manager. Instead, I received a daunting task: "Why is our engagement so bad?"

Imagine starting a new job, excited to learn and make a difference, only to be immediately faced with a critical problem. I still needed to know about the app—its functions, features, and the problems it solved. I was also unaware of our user personas and their requirements. To complicate matters, the CEO had a presentation with the board members scheduled for the following week, and I was the sole data analyst available.

Feeling overwhelmed, I was lucky to have a team ready to brainstorm and ask the right questions. One of the quickest ways to assess the situation was to look at the app's retention and follow the two steps below :

1. Identify Core Features: I focused on the app's multiple use cases.
2. Analyze Retention Curves: I wanted to uncover insights by comparing the retention curves for each feature against the overall retention curve.

Surprisingly, the overall retention was better than we thought. However, a feature we believed could have done better was underperforming. It was a classic case of "Don't judge a book by its cover."

Lessons Learned

Looking back, I realized I made some critical mistakes:

• I needed help understanding the product and what it solved for users.
• I was unfamiliar with the app's features.
• I had yet to learn about our user segments or personas.
• I was surprised to find out how often users encountered the app.

If I had to tackle this exercise again, here's how I'd approach it.

Rethinking Retention: A Fresh Approach

Retention is a core growth metric when evaluating engagement. It's a top metric on my dashboard. However, taking a step-by-step approach rather than plotting the retention curve can benefit your product or growth analyst role.

The first step is to figure out what problem your product solves for the user and who exactly you're solving it for. Andrew Chen suggests using a use case map as a critical framework.

What is a Use Case Map?

• What: Identify the problems your product solves. How would users describe your product in their own words?
• Who: Define your target audience. While the intended user might evolve, understanding your core user is crucial.
• Why: Understand why users would choose your product over others. What is their core motivation?
• Alternatives: Consider how users would solve their problems without your product. For example, if Netflix didn't exist, users might turn to TV channels or download content.
• Natural Frequency: Determine how often users experience the problem. Is it a daily issue, like checking emails, or a weekly one, like grocery shopping?

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Examples Of Use Case Map

Oura Ring

• What: Oura Ring provides comprehensive health tracking, focusing on sleep quality, activity levels, and overall wellness. It offers insights into sleep stages, readiness scores, and daily activity metrics.
• Why: Users choose Oura Ring for its precise health insights, sleek design, and ability to help them make informed lifestyle changes to improve sleep and wellness.
• Who: The target audience includes health-conscious individuals, fitness enthusiasts, and biohackers interested in optimizing their health and performance.
• Alternatives: Before Oura Ring, users might have used other wearable devices like Fitbit or Apple Watch or relied on essential sleep-tracking apps.
• Natural Frequency: Health tracking with Oura Ring is a daily activity, as users wear the ring continuously to gather consistent data and insights.

Todoist

• What: Todoist is a task management app that helps users organize tasks, set priorities, and manage projects efficiently. It offers features like task lists, deadlines, and collaboration tools.
• Why: Users choose Todoist for its intuitive interface, cross-platform availability, and robust features that help them stay organized and productive.
• Who: The target audience includes busy professionals, students, and anyone needing to effectively manage personal or work-related tasks.
• Alternatives: Without Todoist, users might use other task management tools like Microsoft To Do, Trello, or even traditional pen-and-paper lists.
• Natural Frequency: Task management is a daily activity, with users frequently updating their lists and checking off completed tasks.

Hinge

• What: Hinge is a dating app designed to foster meaningful connections by encouraging users to engage in deeper conversations and meet in real life.
• Why: Users prefer Hinge because it focuses on building authentic relationships rather than casual interactions and has features that promote compatibility and genuine engagement.
• Who: The target audience includes singles looking for serious relationships, particularly those aged 25-35 interested in meaningful dating experiences.
• Alternatives: Before Hinge, users might have used other dating apps like Tinder or Bumble or relied on traditional dating methods like meeting through friends or social events.
• Natural Frequency: Dating app usage varies, but many users occasionally engage with Hinge to explore potential matches and maintain conversations.

Use Case Map Framework

Understanding the Problem: What Does the App Solve?

When developing an app, it is crucial to define the problem it aims to solve clearly. This involves understanding the creator's vision and how users perceive and use the app to meet their needs.

Like cooking a meal where you expect taste and presentation, app developers often envision how their product should function and benefit users. However, users may experience and interpret the app differently.

A classic example is Bubble Wrap. Initially intended as a textured wallpaper, it was successful as a packaging material when IBM used it to protect computers during shipping. This shift highlights the importance of being open to how users might find alternative uses for a product, leading to new opportunities.

To fully understand the problem your app solves, both qualitative and quantitative insights are essential:

• Quantitative Tools: Use platforms like Amplitude to gather data on app user behaviours. Analyzing this data reveals users' actions.
• Qualitative Insights: While quantitative insights reveal what users did in the app, understanding why they took those actions requires a deeper approach. Conducting interviews with users can provide valuable context and clarity on their motivations.

Identifying User Segments

Every app has a range of users, from highly engaged "power users" to less frequent ones. Power users regularly engage with multiple features, which is invaluable for feedback. Understanding what problems the app solves for these users can provide critical insights, as they are often the most loyal and vocal advocates.

Asking the Right Questions

To truly grasp user experiences, ask open-ended questions that encourage detailed responses. Instead of simply asking, "What do you like about the app?" consider these:

• Daily Usage Exploration: "Can you describe a recent time you used the app? What were you trying to achieve?"
• Problem Identification: "What challenges were you facing when you decided to use the app? How did the app help you address those challenges?"
• Alternative Solutions: "Before using this app, how did you handle this problem? What was your experience with those methods?"
• Motivation and Triggers: "What typically prompts you to open the app? Is there a specific situation or need that leads you to use it?"
• Expectation vs. Reality: "What aspects of the app do you find most valuable? Are there any features or outcomes that surprised you?"

Identifying Your Users: Understanding User Personas

When building a product, you always have an intended target user in mind. User personas are the characteristic traits of these users, helping you tailor the product to meet their needs effectively.

Personas generally fall into two categories:

• Demographics: These include age, gender, location, and other personal attributes.
• Firmographics: Typically used in B2B contexts, these involve company size, industry, location, and more.

Importance of Capturing Traits

Capturing these traits during user onboarding is crucial. Tools like Segment can help you gather this information with some developmental effort, passing it on to subsequent events. This is vital for performing segmentation or funnel analysis.

Although many startups overlook this step due to the required effort, it pays dividends in the long run. Tools like Amplitude offer persona identification features that can significantly enhance your analysis.

Insights from Persona Analysis

Here are some observations from my experience with persona analysis:

• Multiple Personas: Your product might cater to various personas, especially if it has diverse features.
  • For instance, in our healthcare product, we identified distinct user groups: one set focused on refilling prescriptions, while a younger cohort engaged with health articles due to a family history of health issues and a focus on prevention.
• Different Motivations: Even if personas face the same problem, they may have other motivations or alternatives for solving it. Defining personas for these varied use cases is crucial to better address their unique needs.

Typical User Persona Examples

Hinge: Meaningful Connections for Young Adults

• Demographics:
  • Age: Predominantly 18-34, with the largest group being 25-34.
  • Gender: Approximately 60% male and 40% female.
  • LGBTQIA+ Inclusion: Growing user base among LGBTQIA+ individuals due to inclusive features.
• Personas:
  • Young Professionals: Individuals in their mid-20s to early 30s looking for serious relationships.
  • LGBTQIA+ Members: Users who appreciate inclusive prompts and features that cater to diverse identities.
  • Social Connectors: People who value meaningful interactions over casual encounters.

Todoist: Productivity for All Walks of Life

Demographics:

• Platform Diversity: Users range from students to professionals across various platforms like Windows, Mac, and iOS.

Personas:

• Task Managers: Individuals who need to organize daily tasks efficiently, often using multiple devices.
• Students: Young adults managing school assignments and personal tasks.
• Remote Workers: Professionals who collaborate on projects require seamless integration across devices.

Oura: Health Insights for the Wellness-Oriented

• Demographics:
  • Age: Users span various age groups, with significant interest from those aged 25-34.
  • Lifestyle: Appeals to health-conscious individuals, athletes, and professionals.
• Personas:
  • Health Enthusiasts: Users focused on optimizing sleep and overall well-being.
  • Athletes and Fitness Buffs: Individuals seeking to enhance performance and recovery through data-driven insights.
  • Busy Professionals: Executives and professionals looking to manage stress and improve sleep quality.

Analyzing Alternatives: Uncovering Unique Value Propositions

Understanding alternatives is crucial for identifying your app's unique value proposition. Alternatives are not just competitive products, but solutions users turn to if they aren't using your product. For example, Notion's competition isn't just Coda or Evernote but also Excel spreadsheets or paper notebooks. Here's why understanding alternatives is essential and how you can identify them.

Why Analyzing Alternatives is Important

• Identify Unique Value: By understanding how users solve problems without your app, you can highlight what makes your product stand out.
• Enhance User Experience: Knowing alternatives helps you improve your app by incorporating features that users find valuable in other solutions.
• Target Marketing Efforts: Understanding alternatives allows you to better position your product in the market by addressing specific user needs.

How to Identify Alternatives

Engage directly with your users to effectively identify alternatives.

• Problem Exploration: "Can you describe a recent time when you faced this problem? How did you solve it before using our app?"
• Alternative Solutions: "What methods did you use to tackle this issue before discovering our product?"
• User Experience: "When did you last encounter this problem, and how did you address it?"
• Motivations: "What typically prompts you to use our app instead of other solutions?"

Examples of Alternatives

Let's explore potential alternatives for Hinge, Todoist, and Oura:

• Hinge: Users might turn to traditional dating methods, such as meeting people through friends or social events, instead of using dating apps like Hinge.
• Todoist: Alternatives include using physical planners, sticky notes, or simple to-do lists in apps like Google Keep or Apple Notes.
• Oura: Users may rely on traditional methods, such as journaling sleep patterns or basic fitness trackers, offering limited health insights.

Understanding the Why: Core Motivations and Differentiators

I recently started using an app called Perplexity. I stumbled upon it while searching for a solution to a clear pain point. Unlike ChatGPT or Google, which provided me with a list of results, Perplexity offered live searches and clear summaries, even pulling information from Reddit and YouTube. It cut my research time in half, so I immediately purchased it.

Why Did I Choose This Product?

Perplexity was a clear winner because it saved me time—a core value. I'm willing to pay for any service that offers such utility. Moreover, I recommended it to many people, convincing them to try it.

The Why: Core Motivation and Differentiator

Understanding why users choose a product involves two key factors: core motivation and differentiator.

Core Motivation

Users typically choose a product based on one of three motivations: utility, financial, or social.

• Utility: Products that solve a pain point or make life easier. For example, BigBasket simplifies grocery shopping, and meal delivery plans save time on cooking.
• Financial: Products that help users save money. Wealthsimple's tax feature is a prime example of offering financial savings.
• Social: Products that appeal to emotions, status, or recognition. Social media platforms, as do luxury brands that provide prestige, often fall into this category.

Differentiators

What sets your product apart? More is needed to claim better quality or service. Your product needs a clear differentiator that it consistently delivers.

• Apple: Apple is known for its simplicity and brand value.
• Coda: Described as "spreadsheets on steroids," offering enhanced functionality.
• Tesla: Differentiates itself with cutting-edge electric vehicle technology and a focus on sustainability.
• Slack: Offers seamless team communication with integrations that enhance productivity and collaboration.
• Netflix: Provides a vast library of original content and a personalized viewing experience through advanced recommendation algorithms.

Understanding The Why

Sometimes, users aren't fully aware of why they chose a product. To uncover this, consider asking the following questions, inspired by The Mom Test:

• Customer Journey:
  • "How did you discover our product, and what led you to try it?"
  • "What were you using before you found our product, and how did you come across it?"
  • "Were there any specific events or needs that prompted you to look for a solution like ours?"
  • "How did you feel when finding and choosing our product?"
• Choice Motivation: "What specific problem were you trying to solve when you decided to use our product?"
  • "What was the main benefit you sought when choosing our product?"
  • "How did our product align with your personal or professional goals?"
• Decision Factors: "Were there any particular features that made you choose our product over others?"
  • "What key elements influenced your purchase or use of our product?"
  • "How did our product compare to other solutions you considered?"

By understanding the core motivations and differentiators, you can better align your product with user needs and enhance its appeal in the market.

Determining the Frequency: Understanding User Engagement

Frequency refers to how often users encounter a problem and turn to your product or an alternative to solve it. Accurately determining this frequency is crucial for building your retention curve, as incorrect settings can skew your analysis. Different products naturally fall into various frequency categories:

Frequency Categories

• Daily: Products that users interact with daily are in the "habit zone." They become an integral part of the user's routine.
  • Social Media Apps: Facebook, Instagram, and Twitter are used daily for social interaction and news
• Weekly: These products are used regularly but only sometimes every day.
  • Streaming Services: Netflix and Spotify might be used weekly for entertainment.
  • Grocery Apps: Services like Instacart or BigBasket are often used weekly for grocery shopping.
• Monthly: Products in this category are used less frequently and risk being forgotten if not correctly positioned.
  • Financial Apps: Budget tracking apps like Mint may be used monthly for financial reviews.
• Yearly: These are products or services that users engage with annually.
  • Tax Software: TurboTax is typically used once a year during tax season.
  • Event Planning: Platforms like Eventbrite may be used for annual events or conferences.

Companies Forgotten Due to Low Frequency

• Some companies have struggled because their products were not in the habit zone:
  • Quibi: This short-form streaming platform failed to capture daily or weekly engagement, leading to its quick decline.
  • Yik Yak: An anonymous messaging app that lost its user base due to infrequent use and privacy concerns.

Companies That Moved Users to the Habit Zone

Other companies successfully shifted their products into the habit zone by expanding use cases or enhancing brand positioning.

• Peloton: Originally seen as a luxury exercise product, Peloton shifted users into the habit zone by creating a solid community and daily workout routines.
• Zoom: Initially used for occasional meetings, Zoom became a daily tool during the pandemic by expanding its use cases to include social gatherings and virtual events.

Why Estimating Frequency is Important

Estimating frequency is crucial because it helps you understand how often users need your product, which informs your retention strategies.

To gauge frequency accurately, ask the right questions.

• Problem Encounter: "How often do you face the problem that our product solves?"
• Usage Frequency: "How frequently do you use our product or a similar solution?"
• Alternative Solutions: "When was the last time you used an alternative to solve this problem, and how often do you do this?"

By asking these questions, you can better understand user behaviour and tailor your product to fit naturally into their routines, enhancing retention and engagement.

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