Part 1: Intro
Who this guide is for
This guide is for anyone who is responsible for understanding and driving user acquisition.
User acquisition might mean different things to different businesses. For some, acquisition might involve a number of actions a user takes before being “acquired”. It might happen in a single visit, or it could happen across multiple visits, devices, and browsers. Some examples of user acquisition are:
Getting visitors to sign up and become activated users
Getting free users to upgrade to a paid account
Getting users to convert to purchase after visiting and adding an item to their cart
If you’ve ever wondered how to use behavioral data to understand the hidden drivers behind conversion and drop-off, you’ve come to the right place. We’ll discuss:
The types of questions Heap can help you answer
How to answer those questions
How to interpret and act on the results of your findings
How other companies are using Heap to increase conversion
How Heap can help
Heap can help you answer countless questions related to user acquisition, but here are a few common ones:
Where specifically is drop-off occurring in the acquisition funnel?
Which types of users are converting at the highest rate?
What behavior patterns tend to correlate with higher or lower conversion rates?
Which top-of-funnel efforts (marketing channels, emails, incentives, content) are driving bottom-of-funnel conversion, rather than just surface level traffic?
With the answers to questions like these, you’ll be able to improve the user experience to increase conversion rate and lower the cost of customer acquisition.
Funnels: The key to understanding acquisition
To answer these questions and more, we’ll mostly be using Funnels – one of Heap’s 5 analysis modules.
Funnels are the key to understanding acquisition in Heap, so let’s talk about how they work.
Funnels help you understand how users progress through a series of steps. You input a series of “events” (user actions) and Heap will tell you the percent of users who progress from one step to the next. For example, an acquisition funnel might consists of 4 basic steps:
1) Marketing – Click Get Started
2) Open Free Account
3) Click “Save Gallery”
4) Paid Membership conversion
In this example, a company with a freemium app wants to understand how users progress from signing up to taking a key action (“Save Gallery”) to ultimately converting to a paid member.
The resulting funnel in Heap will tell you the number and percentage of users that make it all the way through the funnel and where they drop off step-by-step.
There’s more we’ll want to do here, but we’ll get to that next.