In the fast-paced and ever-evolving world of startups, building and retaining a user base is crucial for long-term success. The COVID-19 pandemic has only heightened the importance of retention as companies strive to adapt to the changing landscape. As the saying goes, "Retention in the Times of COVID-19" is the name of the game.

In the fast-paced and ever-evolving world of startups, building and retaining a user base is crucial for long-term success. The COVID-19 pandemic has only heightened the importance of retention as companies strive to adapt to the changing landscape. As the saying goes, "Retention in the Times of COVID-19" is the name of the game.

To create great retention, companies must focus on building and deepening user habits over time. This is not a haphazard process but rather a science. Users have unique motivations, cognitive and physical friction, and desires for rewards, all of which play a role in habit building. By understanding these factors, companies can better tailor their strategies to drive long-term engagement.

It's important to note that revenue retention is merely an output of usage. It's a lagging indicator that should not be the sole focus. Instead, companies should shift their attention to one of the core inputs of retention: Activation, Engagement, or Resurrection. These are the building blocks that, when improved, will ultimately lead to higher retention rates.

While it may be tempting to try and retain every single user, this approach is not only unrealistic but also counterproductive. As we continue to witness a shift in user behavior, attempting to keep everyone will result in sub-optimal results. Instead, companies should focus on identifying and retaining the marginal audience.

To determine whether the marginal audience is experiencing real value or only temporal value, it's essential to examine the underlying behavior that drives engagement. If users are engaging solely due to current events, without experiencing the broader value proposition, they are unlikely to retain. Therefore, it's crucial to ensure that users are deriving meaningful and lasting value from the product or service.

One company that understands the challenges of building and retaining a user base is Hyper. With the proliferation of startups in recent years, founders now have access to vast amounts of capital. However, launching new products, breaking through the noise, and building lasting companies have become increasingly difficult. Hyper recognized this and decided to invest $300k in a small number of companies four times per year.

By keeping the number of companies small, Hyper is able to provide hands-on and intimate help to each startup. The companies go through an 8-week-long founder program, during which they receive valuable guidance and mentorship. Additionally, they gain access to Hyper's special partners, further enhancing their chances of success.

Now, let's delve into three actionable pieces of advice that can help companies improve retention in these challenging times:

1. Understand Your Users' Motivations: To build and deepen user habits, it's crucial to understand what motivates your users. Conduct user research to uncover their pain points, desires, and aspirations. By aligning your product or service with these motivations, you can create a more compelling user experience that keeps them coming back.

2. Reduce Cognitive and Physical Friction: Friction is the enemy of retention. Users are more likely to abandon a product or service if it requires too much mental or physical effort to use. Identify and eliminate any unnecessary steps or complexities in the user journey. Streamline processes and make it as easy as possible for users to engage with your product.

3. Continuously Provide Value: Retention is ultimately driven by the value users derive from your product or service. It's not enough to capture their attention initially; you must continue to deliver meaningful value over time. Regularly assess and enhance your offering to ensure it aligns with evolving user needs and expectations.

In conclusion, retention in the times of COVID-19 is a complex challenge that requires a strategic and data-driven approach. By understanding the science of habit building, focusing on core inputs, and identifying the marginal audience, companies can improve their retention rates. Additionally, by learning from the experiences of companies like Hyper and implementing actionable advice, startups can increase their chances of success in these turbulent times.