As you probably know, Hengam is an AI-based platform that predicts user churn and tries to decrease it. But how does Hengam calculate the churn rate and the lifetime of users in an app? And finally, how can we define the number of revived users?
The key to understanding these calculations is the concept of the “control group.” A control group is a standard to which comparisons are made in an experiment. Experiments usually include a control group and one or more experimental groups. The control group and the experimental groups are identical in every way except that the experimental groups are subjected to a specific action that is believed to have an effect on the outcome. That specific action in Hengam would be sending personalized smart push notifications to the experimental group. We compare the metrics and results in the control group (that have not received any messages) to those who have regularly received messages and draw conclusions.
Let’s say that normally in a week, the people in the control group would churn with a rate of 25%. If the churn rate in the experimental group changes to 20% after the personalized push messages are sent out, we can say that Hengam has helped with decreasing the churn rate by 5% — or 5% of the entire group (equivalent to 25% of the churning users) were revived.