Engagement & Retention project | Zoho-ManageEngine

Understanding Site24x7

Core value prop: Monitoring the entire IT stack

Users are using the product every 2-3 days. Whenever they want to get visibility on their IT environment they use Site24x7. Let us take a scenario where a user has multiple servers, websites and applications to monitor. To check the health of the server and application, an IT admin/app admin will open Site24x7 every 1-2 days. The admin might check the uptime of the servers, check for website web vitals and total number of users using the application through real-user monitoring. Through this, the user can experience the core value prop every 1-2 days.

Natural frequency of the product: As seen above, the natural frequency of the product is every 1-2 days. It is difficult to differentiate the users based on power, core and casual, because 90 percent of the users are power users and they have a strong use case from the product. Site24x7's core is Depth, when more users spend time on the platform means more use case is achieved and reflected in the revenue numbers.

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Sub-product: There are no sub-products within Site24x7, whereas there are modules which are within Site24x7. Example, Site24x7 has cloud monitoring feature. If the user does not have a cloud infrastructure to monitor, the user might not use that module. In this way, natural frequency remains high for the features used by the customer.

Core E&R metrics

What makes a user "an active user"?

Critical event in Site24x7 would be when a user can get insights on a server/website downtime and able to quickly bounce back to normalcy in the shortest period of time. As soon users add a monitor in the platform, they tend to be an active users. \

Free users:

• Add monitors in their evaluation period
• Perform actions like anomaly acknowledgment

Paid users:

• Adopts advanced features like AIOps, and IT automation
• Adds multiple monitors across IT stack and renews subscription when it expires

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Customer Segmentation

Site24x7 Customer Segmentation​

Engagement product hook

Engagement campaign

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Retention design

After talking to presales and support people at Site24x7, the retention rate of customers is high at 97 percent averaged across all the plans and personas. This data says a lot about the natural frequency and engagement factors Site24x7 provides to its customers. With a high retention rate, the churn rate is pretty much nil. As discussed in the acquisition project, Site24x7 suffers with the problem of discovery.

Here is the current retention rate:

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Number of retained customers:

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​Note: Number of customers on D0 are average of all the plans and module

Average lifetime retention rate of customers: 96.52%

Average lifetime churn rate in an year(2023): 3.48%​

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Deep dive of Retention

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Customer churn

Top reason for churn:

1. Management decision
2. Macro-economic conditions
3. Financial liabilities
4. Switch to competitors
5. Not happy with alert and alarms

Voluntary: Management decisions, Switch to competitors, Not happy with alerts and alarms

Involuntary: Macro-economic conditions, Financial liabilities

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Negative actions to look up for:

With a higher percentage of retention, usually account management looks into the renewal as an important category for churn rate. I would define renewal as the core metric for churn and metrics like CSAT score, support tickets and removing monitors are secondary. There are a few customers who don't perform any actions on the platforms. These users are called as inactive users.

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Resurrection campaign

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