B2C Channel Quality Comparison

Compares retention by acquisition channel for a B2C subscription app, calculates LTV multiples, and provides clear prioritization recommendations.

Input

What you provide to the skill

Google Ads: 35% W1, 22% W4. Referrals: 72% W1, 65% W4. Content: 52% W1, 40% W4. We’re a B2C subscription app. Which channel should we prioritize?

Output

What the skill generates for you

Cohort Analysis by Signup Source

Overall Assessment: CLEAR WINNER - Referrals dominate significantly

Referrals are your standout channel with 72% Week 1 and 65% Week 4 retention. Google Ads significantly underperforms.

Benchmark Comparison

Metric	Google Ads	Referrals	Content	B2C Subscription Benchmark
Week 1 Retention	35%	72%	52%	45-55%
Week 4 Retention	22%	65%	40%	30-40%
W1→W4 Drop	13%	7%	12%	10-15%
vs. Benchmark	Below	Exceptional	Above	-

Key Insights

1. Referrals Are Dramatically Better (2x+ Other Channels)

72% Week 1 retention is exceptional for B2C—well above the 45-55% benchmark. More importantly:

Only 7% drop from W1 to W4 (extremely low ongoing churn)
65% Week 4 means these users found real value and are sticky
Pre-qualified by someone who knows both your product and the prospect

Why referrals win: Higher intent, better product fit, social proof built-in.

2. Google Ads Users Are Low Quality

35% Week 1 / 22% Week 4 is significantly below benchmark:

65% lost in Week 1 (activation failure)
These users likely clicked on broad/informational keywords
Ad copy may be attracting curiosity-seekers, not committed buyers

Questions to investigate:

Which specific keywords/campaigns drive these users?
Are you bidding on broad match or informational queries?
Does ad copy set accurate expectations about commitment required?

3. Content/SEO is Solid and Scalable

52% Week 1 / 40% Week 4 is above B2C benchmarks:

These users actively sought solutions (high intent)
Sustainable, scalable acquisition channel
Not as strong as referrals but better than paid

4. Week 1→Week 4 Stability Tells the Story

Channel	W1→W4 Drop	Interpretation
Google Ads	13%	High churn continues even after activation
Referrals	7%	Very sticky once activated
Content	12%	Moderate ongoing churn

Referrals don’t just activate better—they stay better.

Channel Quality Ranking

Rank	Channel	W4 Retention	LTV Multiple	Recommendation
1	Referrals	65%	~3x Google Ads	SCALE AGGRESSIVELY
2	Content/SEO	40%	~1.8x Google Ads	GROW STEADILY
3	Google Ads	22%	1x	OPTIMIZE OR CUT

Financial Implication

Assuming average subscription value of $15/month for a B2C app:

Channel	W4 Retention	Estimated 6-Month LTV
Referrals	65%	~$60
Content/SEO	40%	~$38
Google Ads	22%	~$22

Referrals are worth 3x Google Ads users. Even if referral CAC is 2x higher, LTV makes it worthwhile.

Segmentation Suggestions

Dimension	Why It Matters	What to Look For
Referral Source	Understand referral quality	Are referrals from power users better than casual users?
Time-to-First-Value	Activation speed	Do referrals activate faster? Can you replicate for other channels?
Google Ads Keyword/Campaign	Targeting quality	Which specific ads drive low vs. high retention?
Content Topic	Content-channel fit	Which articles/topics attract best users?
Geographic Cohort	Market fit	Do certain regions perform better by channel?

Recommended Next Steps

Immediate (This Week):

Calculate CAC by channel - Compare to LTV estimates above
Audit Google Ads campaigns - Identify specific keywords/ads driving low-retention users
Survey recent referral users - What motivated them to sign up? What did the referrer say?

Short-Term (Next 2 Weeks):

Build/enhance referral program:
- Incentivize existing users to refer (discount, credits, cash)
- Make sharing frictionless (one-click share, pre-written messages)
- Track which users generate highest-quality referrals
Pause or narrow Google Ads:
- Cut broad/informational keywords
- Focus only on high-intent commercial keywords
- A/B test ad copy to set accurate expectations
Double down on content:
- Analyze which content drives best retention
- Produce more in those topics
- Build SEO moat around high-intent keywords

Medium-Term (Next Month):

Referral program sophistication:
- Segment by referrer quality (power users get better incentives)
- Build viral loops into product (share results, invite team)
- Consider dual-sided incentives (reward both referrer and referee)
Google Ads decision point:
- If optimization doesn’t improve W1 retention to 45%+, cut Google Ads entirely
- Reallocate budget to content and referral incentives
Content expansion:
- Hire content writer or agency
- Target 2x content output in high-performing topics
- Build backlink strategy for SEO authority

Summary

Verdict: Prioritize referrals (clear winner), grow content (solid and scalable), optimize or cut Google Ads (underperforming).

Primary Recommendation: Invest heavily in referral program infrastructure. Even a 50% increase in referral volume would be transformative given their 3x LTV advantage. Simultaneously, audit Google Ads for quality—if you can’t get W1 retention to 45%+, cut it and reallocate budget to channels that deliver real value.