User Conversion Analysis (Simulated Case Study)

OWL Compose · Product analytics

User Conversion Analysis (Simulated Case Study)

A report on conversion funnels, user activation and retention by channel

January–June 2026 signup cohorts · Observed through August 1 · Simulated data for a fictional team collaboration product

Signups 29080 users

January–June total

Monthly signups

January–June signups, from the same simulated cohorts.

Jan → Jun · Monthly trend

Week 4 active users 7486 users

Monthly week 4 active users

January–June week 4 active users, from the same simulated cohorts.

Week 4 retention 25.7 %

Monthly week 4 retention

January–June week 4 retention, from the same simulated cohorts.

Spend per retained user 123.6 CNY / user

Monthly spend per retained user

January–June acquisition spend per retained user, from the same simulated cohorts.

Findings

Signups grow each month, while overall week 4 retention ends slightly below its starting level. Within every channel, retention improves between the first and last months. Paid ads account for a growing share of signups, which affects the overall rate. Their activation and week 4 retention rates are lower than those of the other channels. Audience targeting, the first data import and the first useful output are worth investigating.

01 / Monthly conversion

Signups and subsequent activity

Monthly signups rise from in the first month to in the last. Week 4 retention changes from % to %. Week 4 active users increase as the signup base grows, while the retention rate varies slightly.

Monthly signups rise from

in the first month to

in the last. Week 4 retention changes from

% to

%. Week 4 active users increase as the signup base grows, while the retention rate varies slightly.

Signups and week 4 activity

Signups and week 4 activity over time, illustrated with original simulated data.

Figure 1 · The upper line shows signups; the lower line shows week 4 active users from the same cohorts. Every cohort has completed its observation window. Overall retention varies slightly across months.

Retention in every channel is higher in the last month than in the first. Signups from paid ads grow faster, increasing that channel's share of new users. Its lower retention rate affects the aggregate. Both changes within channels and changes in the channel mix contribute to the overall result.

Definition: retention uses the original signup count as its denominator. The overall rate is weighted by cohort size.

02 / Channel performance

Acquisition channel analysis: activation and retention

The horizontal axis shows the share of users who produce their first useful output within seven days of signup. The vertical axis shows week 4 retention. Paid ads score lower on both measures; product communities and partner referrals score higher. User needs, acquisition methods and onboarding support may help explain the differences. Segment data and support records are needed to investigate them.

Activation and retention by channel

Activation and retention by acquisition channel, using original simulated data.

Figure 2 · Circle area represents signups; labels identify channels. Each user belongs to their first acquisition channel. The chart shows observed channel results.

Acquisition spend per week 4 active user, by channel

Acquisition spend per week 4 active user by channel, using original simulated data.

Figure 3 · Direct acquisition spend per week 4 active user for each channel, in CNY per user.

Acquisition spend per week 4 active user

Paid ads incur direct acquisition spend of CNY per week 4 active user. Dividing spend by users active in week 4 provides a way to compare the cost of acquiring sustained users across channels.

Paid ads incur direct acquisition spend of

CNY per week 4 active user. Dividing spend by users active in week 4 provides a way to compare the cost of acquiring sustained users across channels.

Direct spend includes advertising, content distribution, community events and partner commissions. Staffing, product delivery and service costs are excluded. Budget decisions also need paid conversion data, service costs and estimates of each channel's reachable audience.

03 / Onboarding