Our Google Search app teams in Australia and Japan noticed that some users downloaded the app but never searched. We analyzed data to identify the types of users who were most likely to do a search in the Search app and used those insights to revamp our paid advertising strategy.

Consequently, we were able to begin targeting users who might mirror the desired behavior (i.e., engagement within the app) rather than just one-and-done downloaders. Once we optimized our app campaigns in tools like AdWords for “first search”—that is, identifying the users most likely to perform a search—we saw a 40%+ relative uplift in retention. Using data to understand user flows, drop off, usage, and retention rates helped inform our marketing decisions, leading to overall higher lifetime value.

This example serves to introduce our next rule of thumb for consistent growth:

Think retention before acquisition

It may seem like a chicken-or-egg scenario, but it’s not. If you don’t have good retention, your future acquisitions hold very little long-term value. Think of it as a leaky bucket: Without good retention, pouring more users in only guarantees more will fall through.

First, draw a retention curve from a cohort of users who started using your app on a certain day. Then, for each subsequent day, plot what percentage of that cohort came back on that day. If you have poor retention, your curve will keep dropping:
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