Amplitude Analytics announced today the launch of Compass, a powerful addition to the company’s behavioral analytics platform that helps quickly and easily pinpoint specific user behaviors that drive long-term retention. Amplitude provides user behavior analytics with a focus on driving sustainable growth, of which user retention is the cornerstone.

Driving user engagement, retention, and conversion will be indispensable to succeeding in the economic landscape of 2016. With just a 5% increase in customer retention shown to increase profits 25-95%, employees organization-wide are increasingly focused on how to drive retention. Compass enables each department to easily scan through their data and identify which user behaviors are most highly correlated with weekly or monthly retention in a matter of minutes, and then make appropriate product improvements to encourage those behaviors.

2016 Economic Landscape: A Shifting Focus from Growth to Retention and Monetization There has been a significant shift from user acquisition to retaining and monetizing users in both public IPOs and private marketings. Companies such as Twitter, Snapchat, and Dropbox, have seen a decline in tech valuations. Valuations are expected to decline even further, going down 5% every month in the next 6-9 months.

“Investors are becoming wary of companies with a “growth at all costs” attitude and instead want to see companies that can grow at a profit. And with user acquisition costs only getting higher, startups are starting to realize they need to place a premium on retaining their users. Whether or not this downward trend predicts the ‘burst’ of the tech bubble, one thing is clear: businesses need to rethink their strategy in order to be successful,” said Spenser Skates, CEO, Amplitude. “We developed Compass to address this shift in focus and to help businesses, company-wide, identify specific behaviors that will help them drive long-term retention and profits.”

Amplitude Data Insights: Analytics Critical Tool to Improve User Retention and Engagement

Amplitude also released key data insights from its Q4 Analytics Survey of C-level executives, VPs, directors, product managers, and marketing managers, which found that:

• Nearly 75% of respondents said the number one reason they use analytics is to improve user retention and engagement.
• Concerning the most important metrics, 43% want to know about discovery and attribution and 31% about frequency and stickiness. Answering these questions and being able to understand user behaviors pre- and post-conversion helps organizations optimize cross-channel campaigns and deliver experiences that will truly deliver what users want.

QuizUp Increases Retention by 60% with Compass

Mobile trivia app QuizUp used Compass to discover one of the core values of their app: QuizUp users who used the app’s social features within the first seven days of downloading the app were 60% more likely to be long-term users. By leveraging this insight, QuizUp is improving their onboarding process to drive their retention even higher.

“Compass is a powerful tool that digs into which behaviors drive retention,” said Jon Edvald, Head of Data Science, QuizUp. “Using Compass, we found that new users who use QuizUp’s social features within the first seven days have 60% higher retention than other users.”

Based on a previous track record of delivering powerful behavioral analytics solutions, Amplitude has achieved 355% year-over-year revenue growth and 300% year-over-year increase in customer acquisition. In the upcoming months, Amplitude will be releasing both tools and educational materials around improving user retention, engagement, and conversion.