Outline

  1. Understand your product
  1. Define
  1. Create user segments
  1. Engagement
    1. Product hooks
    2. Engagement Campaigns
  1. Retention
    1. Understand and define
    2. Resurrection campaigns

Understanding Product

The Product

With YouTube Music, you can listen to the latest hits, stay connected to artists you love, and discover new music to enjoy on all of your devices.
There are two versions of YouTube Music:
  • YouTube Music with ads.
  • The premium music service, YouTube Music Premium, which includes benefits like:
    • Background play
    • Music with no ads
    • Audio-only mode
  • With a YouTube Music Premium membership , you can listen to music without ads, enjoy background play, audio-only mode, and the ability to download and listen offline
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Core Value Proposition

 
  • Music Streaming - YouTube Music is a completely re-imagined app and desktop product with official albums, playlists, singles and more.
  • Powerful Search - Let YouTube Music guide you through the world of music. Whether it’s an official track, cover, artist or video – find the music you can’t find anywhere else.
  • Music Discovery - YouTube Music serves music based on your tastes, location, time of the day and what’s moving the community around you. Discover something new or keep up with what’s trending.
  • For Paid Users - All the above plus, ads free, offline play, background play and only audio mode.
 

How do users currently experience that core value prop repeatedly?

 
Users experience this repeatedly because of consistent app behaviour like:
  1. Through consistent and continuous music streaming experience on the app or desktop
  1. Through smart and rich search results whether it’s an official track, cover, remixes, playlist, artist or video
  1. Personalised Home Page layout, with personalised mood playlists and radio recommendations.
  1. Through music discovery/auto suggestion/recommendation based on taste, trend, location, time of the day.
 

Natural Frequency of CVP - Casual | Core | Power

User
Natural Frequency
Average Time Spent
Casual
≤ 2/week
≤ 2 hrs
Core
≤ 4/week
≥ 2 hrs
Power
≥ 5/week
≥ 2 hrs
 

Engagement Framework - Frequency | Depth | Breadth

Framework
Key Tracking Metric
Selected
Rationale
Frequency
No of times the app is being used to listen to music
NA
Users may prefer one long listening session vs multiple smaller sessions in day. The number of times someone uses the product doesn’t help them experience more of the core value prop
Depth
Amount of time being spent on the product to listen to music
Primary
The more time they spend listening to music, the more they experience the core value prop. The more time they spend, the better customised are music suggestions/recommendations
Breadth
The number of sub products/pro features being experienced by the user
Secondary
Exploring features/sub products may be a good engagement framework too. As it adds to the further experience of the core value proposition.
 
 

Defining Active Users

Active Users and Frequency

Actions
Natural Frequency of Product
Rationale
User
For Free Users
User has listened/watched ≥15 songs
in ≤3 days
The more time they spend listening to music, the more they experience the core value prop.
Casual to Core
Engagement with Search and Voice Search ≥15 times
in ≤5 days
Exploring search/voice search directly relates to time spent on the app and engagement
Casual to Core
User has spent ≥5 mins per session
in ≤7 days
Exploring features/sub products may be a good engagement framework too. As it adds to the further experience of the core value proposition.
Casual to Core
User has liked/disliked songs ≥10 times in recommendation
in ≤5 days
The more time they spend, the better customised are music suggestions/recommendations
Casual to Core
User has added ≥30 songs to playlist/library
in ≤15 days
CRUD actions in playlists/library is an active user measure, the more they participate the more involved they are
Casual to Core
For Paid/Trial Users
User has opted to subscribe post trial because fear of losing out the likes and playlists already created in trial period
≥ 30 days
User conversion from trial period is a significant indicator of user’s intent to stay and use the service
Core to Power
Renews subscription when trial expires
≥ 30 days
Renewing subscription is a significant indicator of user’s intent to stay and use the service
Core to Power
User has listen to ≤40 songs in background while screen is locked
≤5 days
As only in premium mode you can enjoy background listening, such an action indicates active use of the app
Core to Power
Use of Pro-features like creating Jukebox or Custom Music Tuner radio in the free trial
in ≤30 days
Use of such sub-features indicates towards the breadth framework, captures AHA moment and indicates active intent from somewhere to core and power user
Core to Power
 

User Segmentation

  • Casual | Core | Power
  • ICPs | Demographics | Behavioural
  • RFM - Loyalists/Champions/In danger/Hibernating
 

User Segmentation - User Type

Casual

Depth
Frequency
Breadth
Listens to YT Music for <2hr a week
Once in 2-3 Days
Only uses it for music streaming and casual listening to radio
<5 Use of Search over a week
<15 mins of active session per use
Never explored Curated Playlists or mood playlists
<3 Creating & Managing of Playlist over a week
Freemium User subscribed to no Plan
<5 Liking/Disliking Songs over a week
doesn’t mind listening to video songs within the app, without background play

Core

Depth
Frequency
Breadth
Listens to YT Music for >5 hours a week
Almost Everyday
Trial/Premium subscription to student or Individual plan
>20 Use of Search over a week
>15mins of active session per use
Uses it to create playlists, play offline etc.
>5 Creating & Managing of Playlist over a week
Uses the app to connect to smart devices and car
>20 Liking/Disliking Songs over a week
Likes background play, while Working/Commuting/Studying etc

Power

Depth
Frequency
Breadth
Listens to YT Music for >12 hours a week
3-5 times a day
Premium or family plan.
>20 Use of Search over a week
>15mins of active session per use
Uses the app to connect to smart devices and car
>5 Creating & Managing of Playlist over a week
uses pro features like tuner radio, collaborative jukebox etc.
>20 Liking/Disliking Songs over a week
Likes background play while Working/Commuting/Studying etc
 

User Segmentation - Device and Demographics

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User Segmentation - ICPs/Behavioral

ICP-1
ICP-2
ICP Name
Young Discoverer
Leisure Pursuer
Age
16-24 years
28-35 years
Gender
Any
Any
Marital Status
Unmarried
Married
Kids
None
DINK
Occupation
Pursuing Graduation, Fresh from College, Trainee/Intern in New Age Startups
Mid-Level Managers in MNCs, Startups
Location
Tier 1 Metros
Tier 1 Metros
Lives with?
Parents/Friends/Flatmates
Rented House with Spouse
Education Level
Still Pursuing or Graduates
Grads/Post Grads
Income levels
15000-45000 monthly
120000-280000 monthly
Tech Expertise
Moderate
Moderate
Decision Maker
Self/Parent
Self/Spouse
Risk Appetite
High- No resistance on trying new things in influence of friends
Moderate- No resistance on trying new things that makes more sense
Most used apps
Instagram, Snapchat, Tinder, Whatsapp, Youtube, Swiggy
Instagram, Zepto, Blinkit Whatsapp, Youtube, Uber, Zerodha
How do they spend time?
Hanging out in cafes, Meet-ups, Ordering Food, Watching Videos, Recommending the next series/film/game, Cafe/Bar outing and Weekend trips
Shopping, Buying Groceries, Investing & Budgeting, Maintenance work, Diner-Outing, Weekend trips, consuming OTTs and Youtube
What do they spend their money on?
Budget Food, Travel & Experiences, Grooming, Workout, Shopping, Smart devices and gadgets
Food, Travel & Experiences, Grooming, Shopping, Wellness, Maintenance, Smart Apps, Devices and Gadgets
What kind of content do they consume
Popular Series or Film on OTTs, Live Gaming, Insta Reels, Online Courses
Popular Series or Film on OTTs, Insta Reels, General catchup with news and updating with Industry, how-tos through courses, videos and articles
Affinity to spend on Productivity Apps
Medium
High
Value vs Spent
Looking for maximum value in purchase, Convenience and accessibility over small money
Convenience and accessibility, Looking for more Wholesome Deal, One family One Plan, Bundled Services
Subscribed to
Barter of most big OTT services like Netflix, Prime, Hotstar between friends and friends of friends
Most big OTT services like Netflix, Prime, Hotstar
Frequency of purchase
Monthly (Student Plan)
Discounted Annual Subscription
Which features do they use most
Creating and Playing personalised playlist for various moments/occasions, Saving/Liking Songs
Mostly Playing radio (auto-suggestion) on smart connected devices in home and car, Saving/Liking Songs
how frequently do they use these features
Almost Daily
Often
Willingness to pay
Moderate
High
Problem statement
wants to focus, boost productivity, workout with music. ability to create, share, collaborate and tune-In to what friends are listening
wants to relax, commute, energise with music
 

User Segmentation - RFM

 
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Here's a the data I will look to calculate Recency Frequency Monetary (RFM) Chart for YT music app:
Metric
Description
User ID
Unique identifier for each user
Last App Opened
Date and time of the user's most recent app open
Days Since Last App Opened
Number of days that have elapsed since the user last opened the app
Average Time Spent
Average time (in minutes) that the user spent in the app per session
Number of Sessions
Number of times the user has opened the app during the 10-day period
Primary Action Taken
The main action the user took while in the app (e.g., play a song, create a playlist)
Total Number of Actions
Total number of actions taken by the user during the 10-day period
Total Time Spent
Total time (in minutes) that the user spent in the app during the 10-day period
This data can be used to calculate RFM scores, which can help the app identify its most valuable users and tailor its marketing and promotions accordingly.
 
 

For Free Users

User ID
Recency (Days Since Last App Opened)
Frequency (Number of App Opens in 10 Days)
Monetary (Average Time Spent per App Open)
Primary Action Taken
001
2023-04-23
15
2 hours
Yes
002
2023-04-22
3
30 minutes
No
003
2023-04-23
7
1 hour
Yes
004
2023-04-21
1
5 minutes
No
005
2023-04-23
12
1.5 hours
No
The table has five columns:
  1. User ID: This column lists the unique ID for each user of the app.
  1. Recency: This column shows the number of days since the user last opened the app.
  1. Frequency: This column shows how many times the user opened the app in the 10-day time period.
  1. Monetary: This column shows the average time spent by the user per app open during the 10-day time period.
  1. Primary Action Taken: This column shows the most common action taken by the user during the 10-day time period (e.g., play a song, create a playlist, search for an artist, etc.).
 

For Paid Users

User ID
Recency (Days Since Last App Opened)
Frequency (Number of App Opens in 10 Days)
Monetary (Plan Subscription) over 30, 60 days
Average Time Spent
Primary Action Taken
001
2023-04-23
15
99, 198
2 hours
Yes
002
2023-04-22
3
0, 149
30 minutes
No
003
2023-04-23
7
59, 118
1 hour
Yes
004
2023-04-21
1
0, 59
5 minutes
No
005
2023-04-23
12
149, 298
1.5 hours
No
The table has five columns:
  1. User ID: This column lists the unique ID for each user of the app.
  1. Recency: This column shows the number of days since the user last opened the app.
  1. Frequency: This column shows how many times the user opened the app in the 10-day time period.
  1. Monetary: This column shows the average amount spent by the user per subscription cycle during the D30, D60-days time period. Where the ‘0’ defines trial period.
  1. Average Time Spent: This column shows the average time spent by the user per app open during the 10-day time period.
  1. Primary Action Taken: This column shows the most common action taken by the user during the 10-day time period (e.g., play a song, create a playlist, search for an artist, etc.).
 
 

Engagement

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  1. For Engagement target users who have a high recency value (i.e., those who have recently opened the app)
  1. Use personalised data on users with a high frequency value (i.e., those who open the app frequently) for recommendations
  1. Offer incentives/discounts, to users who have a high monetary value (i.e., those who spend more time on the app per session).
  1. Use personalised data on users with a low recency value (i.e., those who have not opened the app in a while) for deals
  1. Use data on users with a low frequency value (i.e., those who do not open the app frequently) to highlight/showcase new features
  1. Leverage social media channels to promote the app and encourage users to share their favorite music or playlists with their followers.
  1. Use data on user behavior to create dynamic and personalised home screens based on taste, trends, time of day and location
  1. Provide users with the ability to create and share their own playlists or collaborate on playlists with friends, encouraging user-generated content and social engagement.
 
 

Engagement - Campaigns

 
Campaign 1
Personalised Recommendations
Segmentation type of the user
Everyone between Needs Attention-New Customers, Working Professionals
Goal of the campaign
Engagement through Recommendations
Pitch/Content
Commuting to office? Listen to these awesome songs, hand-picked just for you.
Offer
Use machine learning algorithms to offer personalized recommendations for new music or playlists based on these users' listening history and time of the day.
Frequency and timing
Once a day for weekdays
Success metrics
Spike in Average Time Spent
Channel
Push Notification (Timed)
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Campaign 2
App Updates
Segmentation type of the user
Everyone between Needs Attention-New Customers
Goal of the campaign
Engagement through New Features (Breadth)
Pitch/Content
Create for own radio station and listen with friends together! At a party or travelling with friends create music jukebox with friends!
Offer
Consistent, In-App
Frequency and timing
Educate them with Pro Features like Collaborative Jukebox and Custom Radio Station
Success metrics
Spike in Average Time Spent
Channel
Push and App Updates
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Campaign 3
In-App Rewards
Segmentation type of the user
Everyone between Needs Attention-New Customers
Goal of the campaign
Engagement through Incentivisation for Free Users
Pitch/Content
Go Ads-free with Youtube Premium! Try 1-Month Free! Play Music in Background with Premium! Try 1-Month Free!
Offer
Offer in-app rewards, such as free trial periods or premium content, to incentivise these users to come back and engage with the app.
Frequency and timing
Consistent
Success metrics
Spike in Average Time Spent
Channel
In App
 
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Retention

Bird's-eye view

According to a report by Statista, as of July 2021, the retention rate for YouTube Music App was 24% after 90 days from the initial download. It is important to note that retention rates can vary depending on several factors, such as the app's features, user demographics, and competition in the market.
 
Though, the stats above is for US audience, for our view (India) keeping the same benchmark. And assumes curve flattens typically after 90 days.
 
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Microscopic View

Which ICPs drive the best retention?

  • Core users that are hibernating and about to sleep

What channels drive the best retention?

  • Push Notification, Targeted Ads and Updates

What sub-features or sub-products drive the best retention?

  • Recommendations, New Features and Exclusivity
 
 

Define Churn

What are the top reasons your users churn?

Voluntary
Involuntary
Found a better substitute app
Change of location where Low/unstable network or Internet
Looking for more regional taste
Mobile phone Stolen/Sent to repair
Using friend’s credentials
Connected Devices like earphone lost/damaged
Laggy and Buggy UX
Certain tragic events in life
Trial period got over
Doesn’t mind Youtube (Parent App) to listen
Constant crashes
No background play for Free Users
Bluetooth incompatibility/Support/Bug
 

What are the negative actions I'd look for?

  • Decrease in Session Time: If the average session time of users decreases over time, it could indicate that users are losing interest in the app and are more likely to churn.
  • Drop in Daily Active Users (DAU): If the number of DAUs decreases consistently, it could suggest that users are no longer finding the app useful or engaging and are less likely to return.
  • High Bounce Rates: If a high percentage of users are leaving the app after only viewing a single page, it could indicate that users are not finding the content or features they are looking for.
  • Decrease in App Opens: If the frequency of app opens decreases over time, it could mean that users are losing interest or are finding alternative apps to meet their music needs.
  • Low Engagement Rates: If users are not engaging with key features of the app, such as creating playlists or liking songs, it could suggest that they are not finding the app compelling enough to use regularly.
  • Increase in Uninstall Rates: If users are uninstalling the app at a higher rate than before, it could indicate that they are no longer finding the app useful or are frustrated with its performance.
  • Low Retention Rates: If the percentage of users who return to the app after their initial visit is low, it could suggest that users are not finding the app valuable or engaging enough to continue using.
  • High Customer Support Requests: If there is an increase in customer support requests, it could indicate that users are experiencing issues with the app or are dissatisfied with their experience.
  • Low Ratings and Reviews: If the overall rating and reviews for the app are consistently low, it could suggest that users are unhappy with the app's features, usability, or performance.
  • Declining Revenue: If the app's revenue decreases consistently, it could indicate that users are leaving the app or not engaging with premium features, leading to potential churn.
 

Resurrection Campaigns

 
Campaign 1
Expiring Content
Segmentation type of the user
About to Sleep
Goal of the campaign
Re-engagement through limited premium access
Pitch/Content
Offer
Create a sense of urgency by offering expiring content, such as limited-time access to premium content or exclusive content.
Frequency and timing
<3 in 5 days
Success metrics
% increase in frequency and average time spent
Channels
Push Notification, In-App, Email
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Campaign 2
Win Back Campaign
Segmentation type of the user
Hibernating
Goal of the campaign
Retention
Pitch/Content
Jo mila nahi kahin, suno yahin. Get free 1-month free YT music premium
Offer
Launch a targeted win-back campaign with personalized offers and recommendations to bring these users back to the app.
Frequency and timing
<3 in a week
Success metrics
% increase in frequency and average time spent
Channels
Push Notification, Targeted Ads, Email
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Campaign 3
In-App Events
Segmentation type of the user
Hibernating
Goal of the campaign
Re-engagement through Live Events
Pitch/Content
Arijit live! Exclusively on YT Music!
Offer
Host in-app events, such as virtual concerts or listening parties, exclusively for these users to keep them engaged and excited about the app.
Frequency and timing
<5 in a week
Success metrics
% increase in frequency and average time spent
Channels
Personalised Push Notification, Targeted Ads, Emails
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End of Engagement and Retention - Teardown
Thanks!
 
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