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Retention is the center of the growth engine - Reforge CEO Brian Balfour | EP.17 | CleverTapEngage
62 segments available
Brian Balfour is the CEO of Reforge and the former VP of Growth at Hubspot. He knows growth marketing and retention marketing. So when he says retention is at the center of the growth engine, people sit up and listen. In this episode of CleverTap Engage, Brian talks about retention, benchmarks, measurement, some of the best examples of retention he’s ever seen, and whether you can engineer in retention or not. One thing he’s found? Category leaders always have the highest retention. And, when you drill down, retention is at the center of the growth engine. It improves both acquisition and monetization, drives LTV, increases what you can afford to spend on CAC, and demonstrates long-term health and strength in an app business. “CleverTap Engage” is a video interview series featuring the globe’s most respected CMOs and executives, shining a light on how to achieve meaningful and memorable customer engagement. The series is co-hosted by Peggy Anne Salz and John Koetsier. About CleverTap: We are a mobile user engagement and analytics platform enabling startups, marketers and developers to use the power of data and messaging to personalize customer experiences on mobile apps. Today, thousands of marketers and developers worldwide use CleverTap to gain deep customer insights to improve user loyalty. Visit our website: https://clevertap.com/ Our Socials LinkedIn: https://www.linkedin.com/company/clevertap Twitter: https://twitter.com/CleverTap Instagram: https://www.instagram.com/clevertapofficial Facebook:https://www.facebook.com/clevertap CHAPTER TIMESTAMPS 0:00 Are benchmarks bogus? 2:25 Category leaders have the highest retention 5:30 Know who you’re targeting AND who you’re not 7:20 Frustrations with benchmarks 16:10 Measuring LTV 19:05 Retention is an output 25:10 Can you engineer in retention? 29:50 Strategies for mobile growth 34:00 What do marketers understand least about retention 37:55 ‘I WAS STUPID’ 42:52 Defining and keeping your ‘marginal audience’ 47:51 Where does retention fit in the org chart?
Segments Timeline
The Shift from Acquisition to Retention
In this segment, John Koetsier and Peggy Anne Salz introduce the episode, emphasizing the growing importance of retention over acquisition for marketers. They highlight Brian Balfour's expertise in retention marketing and set the stage for a discussion on how retention impacts lifetime value (LTV) and overall growth strategies.
"is retention the new acquisition and our benchmarks bogus welcome to clever tap engage my name is john kutzier and my name is peggy ann saltz and john we're talking about retention which is eclipsing ..."
The Shift from Acquisition to Retention
In this segment, John Koetsier and Peggy Anne Salz introduce the episode, emphasizing the growing importance of retention over acquisition in marketing strategies. They highlight Brian Balfour's expertise and the significance of understanding retention metrics to enhance customer lifetime value (LTV). This shift in focus is crucial for marketers aiming for sustainable growth.
"is retention the new acquisition and our benchmarks bogus welcome to clever tap engage my name is john kutzier and my name is peggy ann saltz and john we're talking about retention which is eclipsing ..."
Introducing Brian Balfour: Retention Expert
Brian Balfour, CEO of Reforge and former VP of Growth at HubSpot, is introduced as a leading voice in retention marketing. The hosts discuss his background and the insights he brings to the conversation about retention, benchmarks, and the interconnectedness of acquisition, retention, and monetization in driving growth.
"controversial things he told us some interesting things about retention about benchmarks and also how to engineer in retention i joined with you john because i'm very excited we're excited to shine a ..."
Introducing Brian Balfour: Retention Expert
Brian Balfour, CEO of Reforge and former VP of Growth at HubSpot, is introduced as a leading voice in retention marketing. The hosts express excitement about his insights on retention, benchmarks, and the interconnectedness of acquisition, monetization, and retention in driving growth.
"controversial things he told us some interesting things about retention about benchmarks and also how to engineer in retention i joined with you john because i'm very excited we're excited to shine a ..."
Retention as the Core of Growth
Brian Balfour explains how retention is central to the growth engine of any business. He discusses the relationship between retention, acquisition, and monetization, illustrating how improving retention can lead to better acquisition outcomes and increased revenue. This foundational understanding is vital for marketers looking to optimize their strategies.
"and i'm peggy ann solz and of course one of your co-hosts for today's show most marketers look for benchmarks and they treat measurement like gold and it's understandable right we want to know how we'..."
Retention as the Core of Growth
Brian discusses his research findings that category leaders consistently exhibit the highest retention rates. He explains how retention is central to the growth engine, linking acquisition, retention, and monetization as interconnected elements that drive business success.
"and that's why i'm so excited about this show because that's what i'm hearing it benchmarks are bogus but no matter how you cut it you know whatever you measure is your activation your engagement it's..."
The Interconnected Growth System
In this segment, Brian elaborates on how retention influences acquisition and monetization. He illustrates that improving retention not only enhances customer lifetime value (LTV) but also allows businesses to invest more in customer acquisition costs (CAC), creating a virtuous cycle of growth.
"so if you think about growth it's a system of really three parts acquisition retention and monetization and those three don't work in silos they work all together as one cohesive system so if you chan..."
The Interconnected Growth System
In this segment, Brian elaborates on the interconnected nature of acquisition, retention, and monetization. He emphasizes that changes in one area affect the others, creating a cohesive growth system. By focusing on retention, businesses can enhance their overall performance and profitability, demonstrating the importance of a holistic approach to growth.
"so if you think about growth it's a system of really three parts acquisition retention and monetization and those three don't work in silos they work all together as one cohesive system so if you chan..."
Understanding Your Target Audience
Brian discusses the necessity of having a clear understanding of who your target audience is and who they are not. He shares insights from his experience at HubSpot, where defining the target market led to significant strategic shifts. This clarity is essential for effective retention strategies and overall business success.
"have essentially the pieces of your system connected in a way that are working together in a healthy way it's kind of funny actually just to to ping in on that for for half a moment i'm i'm pretty sur..."
Understanding Target Audiences
Brian emphasizes the importance of clearly defining target audiences in retention strategies. He shares insights from HubSpot's history, highlighting how understanding who to target—and who not to target—can significantly impact retention and overall business health.
"together in a healthy way it's kind of funny actually just to to ping in on that for for half a moment i'm i'm pretty sure there's some mobile games hyper casual games or maybe a little not so hyper c..."
The Problem with Benchmarks
Brian expresses his frustrations with industry benchmarks, arguing that they often fail to capture the nuances of different businesses. He explains how relying on averages can mislead teams and emphasizes the need for a more tailored approach to measuring success in retention.
"here get rid of them probably short yeah i did though you would imagine i can it can happen i mean look i think i think any type of a good any healthy product or marketing team has a clear understandi..."
The Problem with Benchmarks
Brian expresses his frustrations with industry benchmarks, arguing that they often fail to capture the nuances of different businesses. He explains how relying on averages can mislead teams and emphasizes the importance of understanding individual business contexts when evaluating performance metrics.
"that's okay right that is a fundamentally okay thing and we went through this you know the in the lore of hubspot the history of hubspot that they tell you as you come in as a new employee they talk a..."
Rethinking Benchmarking Strategies
In this segment, Brian suggests alternatives to traditional benchmarking. He advocates for forming small groups of professionals with similar attributes to share insights and metrics, allowing for a more relevant understanding of performance and retention strategies.
"i have so many frustrations with benchmarks i think we could probably just do a like anti-benchmark podcast episode if we really wanted to so but i will i will uh i will attempt to constrain myself an..."
Rethinking Benchmarking Strategies
In this segment, Brian advocates for a more personalized approach to benchmarking. He suggests forming small groups with similar business attributes to share insights and metrics, rather than relying on generalized benchmarks. This tailored approach can provide more relevant and actionable data for improving retention and growth.
"what does it mean i have so many frustrations with benchmarks i think we could probably just do a like anti-benchmark podcast episode if we really wanted to so but i will i will uh i will attempt to c..."
First Principles of Retention Measurement
Brian encourages marketers to approach retention measurement from first principles. He outlines a thought exercise to evaluate retention by considering target market capture and long-term retention rates, providing a more grounded perspective on business potential.
"um and uh um and you're probably gonna gather much more relevant information from that obviously the perfect scenario is to know all the numbers of your competitors and who's doing best right and also..."
First Principles of Retention Metrics
Brian concludes by encouraging marketers to apply first principles thinking when evaluating their retention metrics. He suggests calculating potential revenue based on target market size and retention rates, which can provide a clearer picture of business health. This method helps teams understand their performance in a more meaningful way.
"um and uh um and you're probably gonna gather much more relevant information from that obviously the perfect scenario is to know all the numbers of your competitors and who's doing best right and also..."
The Dangers of Misleading Metrics
In this segment, Brian highlights the dangers of misinterpreting retention metrics. He explains how executives often demand benchmarks for credibility, which can lead to misguided conclusions. Balfour stresses the importance of understanding the context behind retention numbers and warns against the pitfalls of relying solely on external benchmarks, which can lead to poor strategic decisions.
"this there are some people who gather some pretty good numbers and provide some of this context um there's a sas survey done by david scott from matrix and pacific crest uh i'm getting emails about it..."
The Dangers of Misleading Metrics
In this segment, Balfour highlights the dangers of misinterpreting retention metrics and the pressure from executives to conform to industry benchmarks. He explains how relying on potentially misleading numbers can lead businesses in the wrong direction, emphasizing the importance of foundational thinking in measuring success. Balfour calls for a shift in mindset to avoid the pitfalls of 'fool's gold' in metrics.
"this there are some people who gather some pretty good numbers and provide some of this context um there's a sas survey done by david scott from matrix and pacific crest uh i'm getting emails about it..."
Understanding Retention Metrics
Brian Balfour elaborates on the complexities of retention metrics, explaining how different companies define and measure user retention. He discusses the variations in metrics across different verticals and the importance of context, such as time periods and user types. Balfour stresses that retention should reflect a user's habitual engagement with a product, and that understanding these nuances is crucial for accurate measurement.
"of it so we kind of see a little bit of all of it and i don't i don't uh if your excuses i don't want to put in the hard work that is a very bad excuse if your excuse is like hey i've done this anyway..."
Understanding Retention Metrics
Brian delves into the complexities of measuring retention metrics across different companies. He explains that retention can be defined in various ways, such as user retention versus dollar retention, and emphasizes the need for specificity in definitions. Balfour discusses how different time periods and contexts can significantly alter the interpretation of retention metrics, making it crucial for businesses to be clear about what they are measuring.
"of it so we kind of see a little bit of all of it and i don't i don't uh if your excuses i don't want to put in the hard work that is a very bad excuse if your excuse is like hey i've done this anyway..."
Engineering Retention: Key Inputs
In this segment, Balfour outlines the three core inputs that drive retention: activation, engagement, and reactivation. He explains how focusing on these areas can improve overall retention rates and revenue. Balfour also discusses the importance of layering on use cases to enhance user engagement and retention, using examples from successful companies to illustrate his points.
"another company so it's very much an output it's very much what i produce because i've done something that keeps my user coming back keeps my user loyal keeps my user you know we won't even go down to..."
Engineering Retention: Key Inputs
Brian outlines the core inputs that drive retention: activation, engagement, and reactivation. He explains how focusing on these areas can improve overall retention rates. Balfour also discusses the importance of layering use cases to enhance user engagement and retention, providing examples of successful companies that have effectively expanded their use cases to increase user frequency and loyalty.
"another company so it's very much an output it's very much what i produce because i've done something that keeps my user coming back keeps my user loyal keeps my user you know we won't even go down to..."
The Genius of Calm's Strategy
Balfour highlights Calm's innovative approach to retention by layering the meditation use case with sleep assistance. He explains how tapping into existing habits, like sleep, can significantly boost user retention compared to building new habits, showcasing the effectiveness of their strategy.
"overall i think you've also um kind of seen this and brilliantly in a couple other spaces so um uh i think one is uh the meditation app calm and you know led by an amazing leader there her name is uh ..."
Tapping into Existing Habits
In this segment, Balfour highlights the strategy of leveraging existing user habits to improve retention. He contrasts meditation with sleep, explaining how Calm successfully integrated sleep aids into their app, tapping into a natural habit that users already have, thus increasing overall retention through frequent engagement.
"overall i think you've also um kind of seen this and brilliantly in a couple other spaces so um uh i think one is uh the meditation app calm and you know led by an amazing leader there her name is uh ..."
The Nuances of Retention Metrics
Balfour emphasizes the importance of understanding user habits and the nature of rewards when measuring retention. He discusses how the visceral reward of a good night's sleep contrasts with the more abstract benefits of meditation, illustrating how these differences impact user engagement and retention strategies.
"genius it's absolute genius i have a muse um and and so you know the muse is supposed to help you meditate and stuff like that and honestly i i might pull out of the box every three months or somethin..."
Understanding Retention Nuances
In this segment, Balfour elaborates on the nuances of retention, contrasting the visceral rewards of good sleep with the more abstract benefits of meditation. He emphasizes the importance of understanding user habits and motivations to effectively measure and enhance retention.
"i have a muse um and and so you know the muse is supposed to help you meditate and stuff like that and honestly i i might pull out of the box every three months or something like that because meditati..."
Engineering Retention: A Dual Approach
Brian Balfour explores whether retention can be engineered or if it is inherently tied to the core product use. He argues that while certain aspects can be engineered, successful retention strategies often blend natural product strengths with intentional design, using Calm as a case study for effective execution.
"which is around like are you tapping into an existing habit versus building on uh trying to build a new one but there's some other aspects of this right if we just want to carry us through as an examp..."
Metrics and Retention Strategy
Balfour stresses that metrics should be rooted in a deep understanding of product use cases and user strategies. He warns against using metrics in isolation, as they can mislead if not contextualized within the broader retention strategy.
"which is around like are you tapping into an existing habit versus building on uh trying to build a new one but there's some other aspects of this right if we just want to carry us through as an examp..."
Engineering Retention: A Dual Approach
Brian Balfour discusses whether retention can be engineered or if it is inherently part of the product's core use. He argues that while some aspects can be engineered, others naturally arise from the product's use case, highlighting the balance between engineering and organic growth.
"and that's interesting right because that's something that peggy and i were talking about earlier right i mean uh can you engineer in retention or is it part of the core product use and you've kind of..."
Understanding Growth Models
In this segment, Balfour discusses the inherent strengths and weaknesses of different growth models. He contrasts the easy acquisition of social products like Facebook with the challenges of retaining users, emphasizing the need for tailored strategies based on the product's nature and user engagement patterns.
"it's definitely both uh you can um there are ways to engineer it and there are ways um and there are aspects that you can engineer and there are aspects that come naturally um with the use case of you..."
Set and Forget Products vs. Active Engagement
Balfour explains the concept of 'set and forget' products, such as developer tools, where initial setup leads to ongoing value. He discusses how understanding the friction in user acquisition and retention can inform growth strategies, highlighting the balance between ease of use and the need for active engagement.
"for every facebook you probably have 20 or more others that you didn't maintain the habit on so looking at it in that context right you can see how um like how hard it is for a product like that and t..."
Growth Models and Retention Challenges
Balfour examines different growth models, using Facebook and Twilio as examples. He explains how the ease of acquisition can vary significantly between products, affecting retention strategies and the work required to maintain user engagement.
"it's free most of the time i'm coming from like a referral from a friend which is like a very high intent type of thing but the fact that it's like so frictionless um it's incredibly hard uh to um to ..."
Learning from Successful Companies
Brian Balfour shares insights on how to draw inspiration from successful companies while recognizing the uniqueness of each business model. He uses Calm and HubSpot as examples, illustrating how different strategies for retention and growth can be applied based on the specific challenges and strengths of a product.
"you know just kind of let let the fire burn because the fire isn't that big so where do you look for inspiration when you're trying to shape this we talked okay it's part product part core loop we won..."
Learning from Successful Companies
In this segment, Balfour discusses the importance of learning from successful companies like Calm and Zoom. He emphasizes the need to understand the unique challenges and strengths of different growth models to effectively apply their strategies to one's own business.
"or stripe is like a great example too right yeah there's all of this setup i have to do but if i get over that setup pump and like get that thing integrated then the product is just kind of like is ju..."
The Pursuit of Perfection in Growth
In this concluding segment, Balfour reflects on the challenges of striving for perfection in growth strategies. He discusses the importance of recognizing the unique elements of each business and the need to focus on what works for their specific context, rather than trying to replicate the successes of category leaders.
"of just rarely work unless you really understand like the deep like the deep nuances and stuff and how it kind of fits into your overall ecosystem but usually like i i recommend paying it once again k..."
The Pursuit of Perfection in Growth
Balfour reflects on the challenges of striving for perfection in growth strategies. He shares insights on how to balance the desire to emulate successful companies with the reality of one's unique business context, emphasizing the importance of recognizing one's own strengths and weaknesses.
"should we even be looking at these for our role models for the ideas of how to do this or should we really be completely breaking some rules because retention is so personal so different depending on ..."
The Challenge of Retention at HubSpot
Brian Balfour discusses the retention model at HubSpot, emphasizing the importance of maintaining revenue through a strong customer success team. He highlights the challenges faced when selling to solo marketing teams and the efforts required to achieve healthy net revenue retention numbers, illustrating the complexities of customer retention in a competitive landscape.
"the model with hubspot did not have that kind of natural sort of land with one person expand motion and therefore as as a result we our model was to capture up front right we cap you know the average ..."
The Challenge of Retention at HubSpot
Brian Balfour discusses the retention model at HubSpot, highlighting the importance of customer success teams in maintaining revenue. He explains how the company's net revenue retention numbers fluctuate and the challenges faced when selling to solo marketing teams, emphasizing the need for continuous effort to achieve healthy retention metrics.
"the model with hubspot did not have that kind of natural sort of land with one person expand motion and therefore as as a result we our model was to capture up front right we cap you know the average ..."
Learning from Growth Models
Balfour reflects on the flaws in every growth model and the importance of recognizing that no business has a perfect combination of elements. He emphasizes the need for marketers to focus on identifying key areas for improvement and building progressively over time, rather than striving for unattainable perfection.
"when you can combine those in a product yeah and look like i think the the every growth model has its flaws uh the pursuit of like perfection is one that i have to constantly keep myself away from esp..."
Understanding Growth Models
Balfour reflects on the flaws inherent in every growth model and the pursuit of perfection. He shares insights on how to identify key elements that contribute to a successful growth strategy, emphasizing the need for businesses to focus on their unique strengths and progressively build over time rather than trying to emulate category leaders.
"when you can combine those in a product yeah and look like i think the the every growth model has its flaws uh the pursuit of like perfection is one that i have to constantly keep myself away from esp..."
Targeting the Right Audience
In this segment, Balfour explains how Reforge builds its programs for a specific target audience, emphasizing the importance of constraining the audience to ensure impactful education. He critiques the generalization in business education and highlights the need for tailored approaches to retention and growth strategies.
"what are one or two things that you find that they still maybe understand least about retention well it depends right so um so for reefer or reforge we specifically uh we build our programs like any p..."
Targeting the Right Audience
In this segment, Balfour explains the importance of targeting a specific audience for educational programs at Reforge. He critiques the generalization in business education and stresses the need for tailored content that resonates with experienced marketers and product managers, ensuring that the material is impactful and applicable.
"that they still maybe understand least about retention well it depends right so um so for reefer or reforge we specifically uh we build our programs like any product um we build for a specific target ..."
Depth of Understanding in Retention
Balfour discusses the layers of depth in understanding retention metrics and the importance of not just hearing concepts but truly knowing them. He emphasizes the value of Reforge's approach in drilling down into the details of retention and how this depth can lead to better communication and problem-solving in marketing.
"areas an absolute absolute like toast anyways because it's all changing exactly i don't i don't i don't think uh you could even do it in a lifetime and so this actually what you see in a lot of compan..."
The Depth of Retention Metrics
Balfour discusses the layers of depth involved in understanding retention metrics. He emphasizes that while many marketers may have heard about retention strategies, true understanding comes from exploring the intricate details and frameworks that underpin effective retention practices, highlighting the educational approach at Reforge.
"areas an absolute absolute like toast anyways because it's all changing exactly i don't i don't i don't think uh you could even do it in a lifetime and so this actually what you see in a lot of compan..."
Hindsight and Learning from Mistakes
Brian shares personal anecdotes about recognizing past mistakes in his career, particularly at HubSpot. He reflects on how misalignments in understanding and communication led to frustrations and emphasizes the importance of learning from these experiences to foster growth and avoid similar pitfalls in the future.
"i know yeah i don't want to say that i mean yeah like it it uh uh like i said before the purpose is not to tear them down but i think once again we we try to like open everybody's eyes to the amount o..."
Learning from Mistakes
Brian shares personal anecdotes about past mistakes in his career, particularly at HubSpot, where misalignment in understanding led to frustration. He reflects on the importance of context and communication in leadership, advocating for a mindset that recognizes one's own potential misjudgments in collaborative environments.
"think what people are surprised at reforge is is uh you hear these things but hearing them is not knowing it and and when we show the 10 layers of depth that we kind of just we walked through on the r..."
Identifying the Marginal Audience
Balfour introduces the concept of the 'marginal audience,' a term he credits to Bengali Cabba. He explains how identifying users on the edges of your current audience can drive growth, especially during challenging times like COVID-19. This segment emphasizes the need to understand user intent and address barriers to engagement for effective retention.
"and what essentially what it is is just a series of stories like like most of the things like if i look back at my time at hubspot or my past companies where i was like um super frustrated with someth..."
Identifying the Marginal Audience
Balfour introduces the concept of the marginal audience, explaining its significance in identifying potential new users who are on the edge of engagement. He discusses strategies for understanding and unblocking these users, particularly in the context of changing market dynamics due to COVID-19, and how to leverage this understanding for growth.
"really important one for those that that grow the grow the most i have to ask so i'm just curious when you say you made a mistake or you not made a mistake but where you were had a preconceived notion..."
Tailwinds and Retention Challenges
Balfour explains how companies experiencing tailwinds during COVID-19 may face retention challenges as behaviors normalize. He highlights the risk of trying to retain users who were not the intended target audience, using Zoom as an example of a product that gained users who may not continue using it post-pandemic.
"keeping your marginal audience can you talk a little bit about that what is that yeah so the credit on this concept and really goes to um bengali cabba the former head of growth of instagram and bp gr..."
Locking in New User Habits
In this segment, Balfour emphasizes the need to focus on retaining users who have adopted new behaviors during the pandemic. He discusses strategies for locking in these habits and the importance of understanding which users are likely to remain engaged post-pandemic.
"that is um is showing intent right of like visiting and signing up or trying to use the product but is like failing for some reason or another uh and and how do you start to unblock why are they strug..."
The Importance of Product and Engineering in Retention
Balfour argues that retention strategies must be rooted in product development and engineering support. He explains that effective retention cannot be achieved in silos and that cross-functional teams are essential for building leverage and solving meaningful problems.
"try to retain everybody will not not uh will not do as well as others and the reason is that those experiencing tailwinds have probably seen a massive influx of of customers and users that uh the prod..."
Locking in New User Habits
In this segment, Balfour discusses strategies for locking in new user habits formed during the pandemic. He stresses the importance of focusing on users who have adopted the product due to changing circumstances and how to ensure their continued engagement, rather than expending efforts on users who may revert to previous behaviors.
"that is um is showing intent right of like visiting and signing up or trying to use the product but is like failing for some reason or another uh and and how do you start to unblock why are they strug..."
Cross-Functional Teams for Effective Retention
In this segment, Balfour discusses the structure of effective teams for retention, emphasizing the need for collaboration between product, marketing, and customer success. He shares insights from his experience at HubSpot, illustrating how integrated teams can drive better retention outcomes.
"adjacent user these adjacent use cases where uh they're kind of like one degree out from your core use case and they're starting to use the product in times of covid because uh like covet is basically..."
The Disconnect in Retention Strategies
Balfour addresses the disconnect between acquisition and retention strategies within organizations. He advocates for a cross-functional approach to retention, emphasizing that product, engineering, and marketing teams must collaborate to effectively address user needs and build sustainable retention strategies.
"the the we believe that the people who try to retain everybody will not not uh will not do as well as others and the reason is that those experiencing tailwinds have probably seen a massive influx of ..."
The Disconnect Between Acquisition and Retention
Balfour reflects on the common disconnect between acquisition and retention strategies within organizations. He stresses the importance of aligning these functions to create a cohesive approach to user engagement and retention.
"of your your efforts and so my guess is like, on, the, topic, of, retention, a lot, of these companies that are experiencing tailwinds we will see um retention decay and degrade um at some point um an..."
Retention's Role in Organizational Structure
In this insightful discussion, Balfour outlines where retention should fit within an organization's structure. He argues that retention efforts should stem from product teams and be supported by cross-functional collaboration, highlighting the necessity of integrating retention into the core of product development and marketing strategies.
"adjacent user these adjacent use cases where uh they're kind of like one degree out from your core use case and they're starting to use the product in times of covid because uh like covet is basically..."
Building Leverage Through Technology
Balfour discusses the necessity of building technology and software to enhance retention efforts. He warns against merely adding personnel without a strategic approach, advocating for leveraging product capabilities to improve user retention.
"habits now what i do a lot of is interview app marketers who are just really beginning to think about this and it's interesting because there it's like oh acquisition sits here retention is over there..."
Building Leverage Through Product Development
Balfour emphasizes the importance of leveraging technology and product development to solve retention challenges. He warns against siloing teams and stresses that effective retention strategies require collaboration across functions to build leverage and efficiency in addressing user needs.
"of your your efforts and so my guess is like, on, the, topic, of, retention, a lot, of these companies that are experiencing tailwinds we will see um retention decay and degrade um at some point um an..."
The Importance of Cross-Functional Teams
In this segment, Balfour discusses the value of cross-functional teams in driving retention efforts. He shares insights from his experience at HubSpot, where collaboration between product, sales, and marketing teams led to effective retention strategies, highlighting the need for integrated approaches to user engagement.
"interview app marketers who are just really beginning to think about this and it's interesting because there it's like oh acquisition sits here retention is over there and it's very sort of disjointed..."
Creating a Culture of Collaboration
In this concluding segment, Balfour emphasizes the need for a collaborative culture within organizations to effectively tackle retention challenges. He highlights the risks of siloed teams and the importance of fostering an environment where all functions work together towards common goals.
"support um and um and in fact like if you get into a mode where there isn't that support you tend to end up just starting to throw bodies at it and when you just start throwing bodies at it you don't ..."
Avoiding Silos in Retention Efforts
Balfour warns against creating silos within organizations that can hinder retention efforts. He explains that isolating teams can lead to inefficiencies and a lack of meaningful problem-solving, stressing the importance of collaboration to retain top talent and effectively address user engagement.
"uh but it fundamentally has to stem from from product uh i fundamentally believe that there are very few meaningful problems that you can solve without product in engineering support um and um and in ..."
Final Thoughts on Retention Strategies
As the discussion wraps up, Balfour reflects on the key takeaways regarding retention strategies. He encourages organizations to focus on building effective cross-functional teams and leveraging product development to enhance user engagement, ensuring that retention remains a central focus in their growth strategies.
"super quickly and then we took a lot of those things and we started to productize it build technology around it to gain efficiency and leverage and so when when you silo the teams off in different way..."