App User Retention Rate: What It Means And How To Retain?

Every app developer or publisher has to track app user retention, even prior to the app release. The metric is of extreme significance as it tells the number of users returning to the app in a setup time. User retention bears a lot of eminence with regards to user acquisition strategy - as new users are visiting, a chance lingers that the old users are pausing the app usage. User acquisition essentially is never at an end, since there is always a section of users who are only downloading the app but did not start using it. Often, a count of users stops using the app after some time or else they completely uninstall it.

How Is App User Retention Measured?

App user retention is measured following the 4 intervals -

??? 1-day retention

??? 7-day retention

??? 30-day retention

??? 90-day retention

For instance, 30-day retention denotes the percentage of returning users to the app at least by 1x in the 30 days.

Nevertheless, user retention can be measured for any time period.

Why App User Retention Rate is So Important To Businesses?

App user retention rate indicates the engagement level, loyalty and interest of the users.

A high app user retention rate indicates customers' regular app usage – the business is likely to have a low percentage of users installing or leaving the app. Hence the monetization opportunities rise.

Alternatively, a low app user retention rate means a high percentage of users are either uninstalling or leaving the app - it is a serious concern. It results in revenue loss.

Similar to different key performance indicators, app user retention rates help in understanding the business app's performance. It acts as a vital tool to plan business strategy. For instance, how much possible will it be to retain each newly gained customer, how much time should the decided content strategies remain effective and how much growth the company will achieve in the future can be determined.

Low app user retention indicates the acquisition problem of the business. The business cannot attract and win over the right potential users. Addressing the distinct reasons leading to such an event is necessary, specifically because making an investment in customer retention could cost less compared to new acquisitions.

Several businesses might emphasize new customer acquisition but quantity is not always a measure of success. Customers continuing with the app usage over a long time deserve trust, and engagement since they have high thoughts about your company.

App user retention rates uncover the reasons behind the users disengaging from apps, which calls for altering the Lifetime Value (LTV) strategies. Low app user retention rates indicate the issues within the app itself, customer satisfaction breaches, competitors' edge with better technology and features, and app services. Using this insight, improvements should be made or the app campaign or marketing approach should be modified. Thus, measuring app user retention rates offer a valuable insight to frame on wider brand strategy with careful plans.

In this write-up, we have amalgamated the top five app user retention strategies teamed with certain unique approaches and tools for boosting app user retention rates.

5 Important App User Retention Strategies to Follow For Enhancing App User Retention Rates??

Now we come to the core of our discussion. Here we shall throw light on how careful the app marketers are to follow the essential app user retention rate strategies.

1. Giving Immense Importance To App Onboarding

Onboarding is the chief of all critical app user retention phases as it ushers the users to form the first impression regarding the product and service. If the onboarding flow is poor or complex, then the users face difficulties in discovering. So, they use high-value features that cause the users to leave. Hence, the new users should be made to understand the unique value proposition of the app quickly. Here is how it can be effectively done -

a) By implementing contextual user flows, the users can quickly get started. Product walkthroughs play the role here like the users can set up their accounts by signing up, fill in profile details, set preferences, like language or region, and so on and so forth.

b) By identifying the core activity or actions, the users can well perform them. The core function, ideally for a fantasy gaming app indicates the users are playing the first game on joining the contest. In the same way, the users book their first tests using the health care apps. Hence, nudging the users towards these actions enables quick activation. This is how users are retained by guiding them to specific actions related to the value proposition of the app.

c) By avowing introduction of multiple features for avoiding overwhelming users, by highlighting features at a time. For instance, highlighting the filter option in the e-commerce app to the user segment browsing through a list of products.??

These steps ease it out for the users to realise the value of the app in the first-hand interaction. The users can discover the value, which is easier with a no-code platform. Hence no scope for deploying real-time no-code nudges for a few minutes.

App Onboarding is a continuous process, since user activation. It should be extended to the existing users for introducing new features.

2. Visualizing the Ideal User Path

A core path created for the users makes them perform the app's core function, like signing up, adding funds, joining a category and utilising the necessities. A clear picture of the number of users completing these steps comes up, as well as time spent at the activity, along with the drop-off points. While the funnel drop-offs are minimized, a foundation for long-term app user retention is built up.

3. Following Product-Led Growth Strategy

Product-led growth deals with prioritizing product experience. This is how a product-led growth strategy works out -

a) Users can experience the product first-hand. Its winning motto constitutes of experience first, commit later. It resonated with building free trial or freemium models.

b) Products become self-serving. A series of in-app engagement tactics are prevalent, but Contextual nudges are the most effective ones, which are the visual hints in form of spotlights, instructional or informational tooltips, and beacons. These make products more intuitive.

c) Quick value is delivered. Users can experience the app’s value early through the contextual walkthroughs - beginning at the onboarding process. With the users being engaged with your products, the focus should be on helping them to find the value on a constant basis.

d) Retention is the metric that matters the most, and the products should be empowered with retention. Adding the perfect product experience to the product makes it the strongest resource for earning users' engagement.??

4. Segmenting Users According to Multiple User Events or Activities

The key to driving 1:1 conversations with the users is user segmentation. The users should be segmented on the basis of critical app events, which include products viewed, products clicked and the scrolls’, the user attributes.

User segmentation helps in delivering user-preferred communications across a list of channels. Let us take the example of nudges – the nudge journeys are built on the basis of user segments.

These are a few user segments and ideal nudge journeys to be built for each customer –

a) Add To Cart – Deploying a tool-tip nudge to highlight the offers or discounts applicable on particular items added to their cart, arouses the instinct to buy sooner among the users who have added a list of products to the cart. With the "Do-Not Miss Out" tag, or indicating the count of users who purchased in the last 24 hours, or the fast-selling items – the users can be well enticed to place the order by visiting their cart.

b) Average Session Time – Another way to trigger nudges is segmenting the users on the basis of average session time. By nudging the users spending enough time on your app towards a paid version, the up-selling can be increased. Nudges highlight the value that the users receive after paying for a minimum membership or account.

c) Page Activity – The users who have already visited a specific page are even included in Page Activity. Implementing nudges for highlighting a key feature on the page or guiding the users on the next step provokes them to complete the purchase. For instance, prompting the users to move products from wishlist to cart and completing the purchase.

Retention numbers can be driven up by delivering engaging and contextual experiences to user segments.

A Lesser Known Fact – Now, unlimited no-code segments can be built. Integrating with several analytics providers helps in adding all the app events directly to the dashboard without having to pass any data onto servers.

5. Building Personalized User Journeys Both Outside and Even Within the App

Personalized user journeys help in working out as it is the essence for each move made for user retention. Target communication making the users visit again for more purchases is possible when you have a unified view of each customer. A well-planned experience covering the touchpoints, which include push notifications, contextual nudges, web messages and walkthroughs is indeed helpful in orchestrating unique journeys for all users. Each tap, click, search and scroll should be sliced and diced for delivering segmented messaging.

It might begin with sending personalized emails or push notifications for getting users on the app – all of these are based on users' activity on your app. When a user browses through certain products, then the emails and push notification campaigns help in communicating the lingering offers applicable to their favourite items. As soon as the user is on the app, then a personalized homepage will engage them better – they can start over where they had left off. Nudges encourage the users to add their preferred products to the cart and go closer to getting a transaction done since they dedicate a lot of time to checking out different options.

The primary level for user retention is indicated by the personalization module, starting from tailored product recommendations to real-time customer segmentation engagement.

The percentage of users continuing with using your app after downloading, during a specific time period is said to be the App User Retention Rate. Usually, it is calculated by the unique count of users active in at least one session per day, and dividing it by the total installs. It is said to be the vital key performance indicator for app developers since it shows valuable insights into the app's performance along with the overall user experience.