December 03, 2024 | Read Online

Hello! I hope your Black Friday was good for your app.

We’re in December, for my app (and many others) December isn’t usually the best month (I hope it’s not the case for you)

But if it’s your first year with your app and this is happening, don’t worry!

For this email we will talk about only 1 topic because it’s reeeeeally important and big.

In today’s email we’re going to talk about:

Shopify App Growth Blueprint: Improving your conversion rate

Let’s go! 🔥

Shopify App Growth Blueprint: Improving your conversion rate

1. Why You Should Track Data

Let’s start with the big question: Why track data at all? You might think you know your users—what they like, how they interact with your app, and why they churn. But the truth is, without actual data, you’re guessing. And guesswork doesn’t scale.

Here’s what tracking data enables you to do:

Understand User Behavior

Tracking helps you see what’s really happening:

Which features are used most often?
At what times do users interact with your app?
Where do they drop off during onboarding?

Spot Issues Early

Churn doesn’t just happen. Users leave for specific reasons, whether it’s a lack of engagement, confusion about your app, or unmet expectations. Data tracking helps you identify red flags, like users not completing key steps or low engagement.

Drive Engagement and Retention

If you know when and how users interact with your app, you can tailor your strategies:

Engage users with emails or live chats when they’re most active.
Re-engage users who show signs of churn before they leave.

Optimize Your Funnel

Your app’s success depends on getting users from installation to becoming paying customers. Tracking data shows you where users drop off so you can fix those leaks.

2. The Basics of Tracking: How It Works

What to Track

In a Shopify app, nearly everything can be tracked:

Actions: Events like “Install,” “Open Dashboard,” or “Create Upsell.”
Attributes: Details about these actions, like the time they occurred, the product involved, or the user’s location.

For example, if a user creates an upsell, you can track:

What product was upsold?
What was the upsell price?
Was the upsell successful?

By combining actions and attributes, you get a complete picture of user behavior.

Using Mixpanel

When it comes to tracking data, Mixpanel is my favorite tool. It’s flexible, powerful, and built for understanding user actions in real time. Here’s how you get started:

Install the Mixpanel Library First, integrate Mixpanel into your project. Their website has detailed tutorials to walk you through it.
Define Events For every key user action in your app, create an event in Mixpanel. Examples:
- “Dashboard Opened”
- “Upsell Created”
- “Settings Saved”
Add Attributes Pair events with meaningful details. For instance:
- Time: When the event occurred.
- Context: The Shopify plan of the user, the type of product involved, etc.

3. Building Mixpanel Dashboards

Once you’re tracking data, it’s time to visualize and analyze it. Mixpanel’s dashboards are incredibly useful for this. Here are the main types of reports you’ll use:

Insights

The Insights tool is where you start:

Track how often events occur (e.g., “Dashboard Opened” 200 times last week).
Break down events by attributes (e.g., how many users on a Basic Shopify plan vs. Advanced opened the dashboard).
Identify trends (e.g., user activity increasing at certain times).

Funnels

Funnels are all about tracking conversion rates through key steps in your app:

Step 1: Install the app.
Step 2: Open the dashboard.
Step 3: Create an upsell.

For each step, Mixpanel shows you the percentage of users who complete it. If you see a significant drop-off, you know where the problem is.

Pro Tip: Use funnels to track onboarding. For example:

Install → Dashboard → First Upsell Created → Payment Made.

If only 20% of users complete onboarding, it’s a sign to simplify or improve the process.

Flows

Flows are like funnels, but less structured. They show you all the possible paths users take after an event. For instance:

Step A: Install the app.
Step B: Open the settings page.
Step C: Create an upsell.

Use Flows to discover unexpected user behaviors and optimize the journey.

Retention

Retention reports show how many users stick around over time. For example:

Of the users who installed this month, how many are still active after 30, 60, or 90 days?

This is critical for understanding churn and improving long-term engagement.

4. Using Data to Reduce Churn

Churn is every app developer’s nightmare. But with the right data, you can fight back. Here’s how:

Identify Red Flags

Some churn signals are obvious:

Users only open the dashboard once a month.
Key features go unused.

Act Before It’s Too Late

The best time to save a user is before they leave. For instance:

If a user hasn’t opened the dashboard in a week, trigger an email or live chat.
If users aren’t completing onboarding, offer help directly in the app.

5. Iterating with Insights

Tracking data is just the beginning. The real value comes from acting on it. Here’s how:

Make Assumptions

For example:

Users aren’t creating upsells because they don’t understand the feature.
Advanced Shopify plan users churn more than Basic plan users.

Validate Assumptions

Combine quantitative data (the numbers) with qualitative insights (user feedback). For example:

If users don’t create upsells, ask them why. Is the feature hard to find? Confusing?

Iterate and Improve

Once you validate your assumptions, test solutions:

Simplify your dashboard if users find it confusing.
Add tooltips or guides to help users complete key steps.

Track the impact of these changes to see if they work. If they don’t, roll back and try something else.

6. Practical Examples of Data Tracking

Here are some real-world scenarios to inspire you:

Example 1: Improving Dashboard Engagement

Problem: Users only open the dashboard once a month. Solution:

Track “Dashboard Opened” events.
Identify low-engagement users and send reminders to return.

Example 2: Optimizing Onboarding

Problem: Only 50% of users complete onboarding. Solution:

Use a Funnel to track each step.
Identify the drop-off point (e.g., after “Dashboard Opened”).
Simplify or guide users through that step.

Example 3: Reducing Churn

Problem: Users on Basic Shopify plans churn more. Solution:

Break down churn by Shopify plan.
Focus retention efforts on Basic plan users or adjust targeting.

7. Advanced Strategies

Once you’ve mastered the basics, here are some advanced ways to leverage data:

Combine Metrics

Mix different data points for deeper insights. For example:

Compare retention rates by the source of installs (Shopify App Store vs. partnerships).
Identify which channels bring the best long-term users.

Track New Features

Whenever you release a new feature:

Track how many users open or use it.
Analyze why some users engage and others don’t.

8. Final Thoughts: From Data to Growth

Tracking data isn’t just about numbers; it’s about making your app better. It’s about understanding your users, solving their problems, and keeping them engaged. Whether you’re using Mixpanel, another tool, or a combination of both, the steps are the same:

Track everything that matters.
Analyze the data for insights.
Use those insights to improve your app.

Remember, the goal isn’t just more installs—it’s more conversions, more engagement, and happier users. Start tracking today, and watch your app (and your revenue) grow.

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See you in the next email!

Mat 😁

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