Your user base will always increase by attracting new members, but your revenue will increase by your ability to keep existing members.

Repeated buyers devoted to your product are likely to spend 31% more, and returning customers are 50% more prone to trying out new products and cost less nurturing before making a purchase.

Many businesses focus mainly on acquiring new customers. Still, you can increase the lifetime value of your business and its clients by leveraging your mobile app retention data to develop customer loyalty programs. 

App retention metrics are crucial because losing customers at any stage of the buying process, particularly after purchase, is detrimental to your company’s bottom line.

We’ll look at the psychology of retention in this post, dissect the fundamentals of mobile app retention metrics, offer statistics and benchmarking data, and contrast acquisition and retention.

Now, let’s get going!

What is mobile app retention?

The number of users who stick with an app over time is known as mobile app retention. Mobile app retention metrics are frequently presented as intervals of 30, 7, and 1 day following a user’s initial download. You can simply divide the total number of monthly active user base by the total number of monthly app installs to determine the rate.

Why is it important to track mobile app retention?

The advantages of user retention are extensive from a business standpoint. Retaining monthly active users rather than continuously bringing on new ones is more economical. 

A devoted user base in a fiercely competitive market can produce recurring revenue, offer insightful recommendations, and serve as brand ambassadors. You can promote long-term growth, sustainability, and competitive advantage by concentrating on user retention.

Moreover, user retention tactics provide:

• Improved connections with customers
• Helps in measuring growth and profitability
• Ability to identify churn rate
• Economy of scale
• Possibility of getting feedback
• Ongoing development
• An edge over competitors

How to increase mobile app retention with best practices

How can you improve the stickiness of your app and build a favorable brand image to maximize retention rates?

1. Increase app retention through outstanding UX and CX

According to another statistic, after just two negative experiences, 86% of consumers say they would quit a brand, and 74% say they are likely to make a purchase based only on customer experience Hence, while UX focuses on designing user-friendly interfaces, CX takes a broader view of customer journey.

Personalization matters

91% of customers are more prone to purchase a brand that offers tailored content and offers, in short, personalization. To deliver a highly relevant experience and guide your segmentation strategy, you can use profile, behavioral, and demographic data for a better and more personal experience for your audience.

User flow and product design

To get rewarded, people prefer to do the simplest thing possible. To reduce time to value, your app should have an intuitive user interface (UI) and a frictionless user journey.

Also Read: The What, Why, And How Of UX Analysis: 2024 Guide

2. Increase mobile app retention by building emotional connections

Humans are social creatures, and the best way to understand the psychology of habit formation(in terms of forming a connection) is to build emotional bonds. Here’s how to develop user relationships through meaningful interactions:

Create a tribe of devoted users

The incentive to keep users returning to your app is a sense of acceptance and recognition that stimulates a sense of belonging. By creating an in-app community where users can interact with one another and have a fulfilling experience, you can make your app more sticky(stickiness).

In addition to allowing you to use user-generated content (UGC) to improve the perception of your brand, your community should enhance the customer experience. Incorporate content moderation features into your in-app chat to establish a secure space for on-brand communication.

Customer Assistance

User interactions on your app should be consistent with your brand and centered around ensuring users have a positive, fulfilling experience. They should be a component of an omnichannel customer experience that helps consumers form favorable opinions about your company.

Read also: Mobile Optimization: Tricks of the Trade For Enhancing User Engagement.

3. Keep people around by providing value at every step

Delivering on the promises made by your app is not the only aspect of adding value. Yes, you should accurately describe yourself and what you do in your marketing materials and app store listing. 

However, delivering actual value requires a great deal more. Users will likely quit your app and never return if you don’t fulfill your promise. Additionally, you would be drawing in the incorrect audience with your app marketing budget.

Everyone in the marketing business knows that value comes first. In order to receive something, you must first deliver. It is a natural law, much like the give-and-take analogy.

4. Use in-app messaging to convey urgency and context

Users will always need to be educated to get the most out of your app, regardless of how intuitive it is. Nothing compares to in-app messaging, even if you create a vast resource library on your website and create incredible email onboarding sequences. 

This is so that you can improve the user experience while the user is using the app and has access to all of its features, which is made possible by in-app messaging.

The data speaks for itself: according to Localytics, in-app messages result in 3.5X higher user retention.

Now, look closer at the best mobile app retention metrics to consider tracking.

5. Track your data carefully and take appropriate action

After you gain some traction, data-informed decisions are essential for growth, but measuring the appropriate KPIs is the first step in that process. Apart from the apparent metrics such as Life Time Value (LTV), Average Revenue Per User (ARPU), churn, Cost Per Action (CPA), and retention rate, you should set up tracking for a few important app metrics unique to retention.

Here are some instances:

• Duration of a session
• Time allotted to each session over time
• The average number of sessions for each user over a given period
• Interval between sessions

You can more accurately anticipate uninstalls and take proactive measures to stop them once you better understand the app experience using this kind of session data.

Read Also: Unlocking Insights With Mobile Analytics: Tools and Best Practices

Best Mobile app retention metrics to consider tracking

The success of your mobile app mainly depends on you, as a product manager or product data analyst, becoming a retention expert. By comprehending and evaluating user engagement via critical metrics, you can improve your tactics and guarantee sustained expansion. Here’s how to use the metrics and measurement of mobile app retention to your advantage:

The success of your mobile app solely depends on you, as a product manager or product data analyst, becoming a retention expert. By learning about and assessing user engagement via critical metrics, you can improve your tactics and ensure sustained growth. Here’s how to employ the metrics and measurement of mobile app retention to your advantage:

Retention rate: The percentage of users who return to your app after their initial visit. To compute it, pick a period (such as 30 days) and divide the total number of users at the beginning by the number of users who return during that time. An app with a higher retention rate is more valuable and engaging for your users.

Churn Rate: The opposite of retention, churn is the proportion of users who stop using your app after a predetermined time. It is computed by dividing the total number of users at the beginning of the period by the number of users who have departed. Retention is essential, but so is minimizing churn because it shows how well your user base is doing.

Session Length: This statistic shows how long users typically use your app in a session. Extended sessions may be a sign of increased interest and engagement.

Session Frequency: Users’ level of engagement is indicated by how frequently they open your app within a given period. More frequent sessions suggest a more indispensable app.

User Lifetime Value (LTV): This is the total amount of money you anticipate making from a typical user during their app usage. It directs your marketing and development budgets and aids in your understanding of the long-term benefits of user retention.

DAU (Daily Active Users) and Monthly Active Users (MAU): These metrics track how many users interact with your app daily and monthly. They give you a quick overview of how often your app is used.

Stickiness Ratio: This measures how frequently users return to your app by dividing DAU by MAU. An app with a larger stickiness ratio is likely more engaging and has a more devoted user base.

Revenue per User: Although not precisely a retention metric, monitoring the income each user generates from purchases, subscriptions, or advertisements can assist in estimating the benefits of raising retention rates.

Net Promoter Score (NPS): This metric gauges user satisfaction and loyalty by asking users if they would recommend your app to others. It is not a direct retention measure. It is a reliable indicator of both organic growth and retention.

Conclusion

One of the most crucial metrics to gauge the success of your app and maintain user satisfaction is app retention. There are many easy ways to increase app retention, such as streamlining the onboarding process, implementing push notifications, combining some gamification, and much more.

By implementing these tactics, you can improve engagement, reduce attrition, and increase revenue. Furthermore, mobile app retention is crucial for the sustained success of your application. Understanding retention and why it matters and implementing best practices can significantly impact user engagement and long-term success. 

By focusing on the points discussed in this simple guide above, you can easily create a compelling environment that encourages users to stick around. I hope you found this mobile app retention guide – what, why, and the best practices helpful. 

Please feel free to engage in the comment section below. Ask your doubts, share ideas, or simply start a conversation. I’m waiting!

FAQs

How can I improve user onboarding for better retention?

Simplify the onboarding process, focus on delivering immediate value, and guide tooltips or tutorials. Minimize the steps required for users to start using the core features of your app.

Are loyalty programs effective for app retention?

Yes, loyalty programs can significantly impact retention. Offering rewards, discounts, or exclusive access to loyal users encourages them to stay engaged with your app and fosters a sense of loyalty.

What is the role of app performance in user retention?

Users are likely to abandon an app with performance issues. Regularly optimize your app for speed, fix bugs promptly, and ensure a seamless and coherent user experience to keep users satisfied and engaged.

How can feedback and reviews be utilized for app retention?

Actively seek user feedback, address concerns, and implement suggested improvements. Positive reviews can attract new users, while transparently handling negative feedback demonstrates your commitment to user satisfaction.