Company
Date Published
Author
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Word count
1599
Language
English
Hacker News points
None

Summary

Understanding user behavior through segmentation analyses, such as lifecycle and engagement segmentation, is crucial for product teams aiming to drive growth and improve user engagement. Lifecycle analysis, often termed "growth accounting," breaks down users into categories like new, retained, and resurrected users to provide insight into the dynamics of user base growth or decline. By visualizing these segments, companies can identify factors that contribute to changes in active user numbers, such as marketing campaigns or product updates. Engagement segmentation, on the other hand, focuses on how users transition between different levels of engagement, such as occasional, core, and power users, providing insights into how effectively a platform converts casual users into high-value ones. Together, these analyses help companies understand not only what and when changes occur but, more importantly, why they happen, enabling them to make informed decisions to foster sustainable growth.