Add pet and aging-parent features so families keep using the app after kids leave

Giordano Contestabile… main use cases. And so often when we read an experiment and we get data, it's not just some automated system, although increasingly that's the case that tell us, "Oh, this is interesting." It's really someone that knows the user and the platform and the product very well that says, "Oh, this is happening. I think that's the reason why." Because you already seen this in other cases, et cetera, et cetera. So that's kind of on the understanding.

Giordano ContestabileThen acting on it, there are two ways. So one is deliver specific values, specific features that are aimed at sub-audiences, I will say, or I will say parts of our core audience. So for example, we're doing a lot of work on pets. Why? Because about 80% of our families with kids that use our platform also have a pet. So there is a huge overlap as you can imagine.

Giordano ContestabileAnd also because we have a lot of audiences on the platform that are not necessarily these nuclear family couples, for example, a lot of them have pets. And maybe they're not so interested in some of our core features that are driving safety or things that are more family oriented. But if you add value for pet owners, we make the platform better for them, we can make them subscribe, et cetera, et cetera. So we think about those audiences.

Giordano ContestabileWithout going into a lot of detail, but what I can say is that there is a certain circle size, three to four people, that has a significantly higher conversion and retention than lower and higher circle sizes. And so higher circle sizes is often friend groups or things like extended family. Or they're probably less motivated to pay for safety features.

Giordano ContestabileAnd the lower circle sizes, yes, they're either couples or maybe groups that maybe the kids... One big churn reason that we have is the kids left, they're in college. And that's basically for some families, at least, the end of the Life360 circle, right? It's really about how their needs and how their life changes.

David BarnardYeah. Well, that's great, the pet feature, right? So the kids leave house and now you're extending that runway by tracking their pet instead of the kids.

Giordano ContestabileSometimes we bundle some offers in the apps. When you subscribe, we say, "Hey, do you want a free Tile?" Or things like that, that with certain users that helps converting. But then there is a retention consideration. We know from data that people with Tiles retain better overall than people without Tiles. Simply because the base is they have the same use case and they layer Tile on top of it and so it becomes more useful.

Giordano ContestabileAnd also there is a matter, as you mentioned, of prolonging the usage cycle, I will say, of the app. So people use their trackers on younger kids, for example. Maybe younger kids don't have a phone and you can put a Tile in the backpack and have some peace of mind. You use the Pet GPS even when your kids go to college, your dog is still there so you're going to still using it.

Giordano ContestabileMore and more do we work on the aging parent segment. I don't know if you're familiar with this concept of the sandwich generation?