Why Mobile App Retention Matters?

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With the market for apps being extremely crowded and the quality bar rising continuously, the era of the get rich quick apps have long gone by and the real challenge for the marketers/ App Entrepreneur is to gain a significant mindshare of their user base.

This is where the significance of Mobile App retention comes in. With so many apps to download and use on the app store, most of the apps get lost among the collection of apps downloaded by the user or gets deleted soon after download. It is estimated that in case of most apps within a period of 3 months, over ¾th of their customer base is long gone, which in all sense affects your ARPU and in turn your net revenue.

App Entrepreneurs have a retention problem rather than a discovery problem. The ASO techniques are extremely important in getting apps visibility on the app store and maybe a few downloads but with the plethora of apps on the app store and the relatively low barrier to delete an app from a mobile, the major challenge for an app maker/ marketer is to increase the user retention and with it the Lifetime value of their users.

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  • Great list - we do a bunch of those in our games, though not all. I'd add to the list:

    - in-app surveys (polljoy, mixpanel)
    - a/b testing (amazon, splitforce, optimizely)
    - customer loyalty programs ( punchtab etc)
    - screen recording / UX improvement (eg usertesting.com)
    etc

    Retention is a lot harder to get right but once you have it you can more easily get users to pay in the game or app.
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  • Its more important to maintain a app rather than developing it.So to make it more friendly usage, this layout provide us the best way to monitize and maintain the app wisely.
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Why Mobile App Retention Matters?

  1. 1. Mobile App Retention – Why You Should Never Neglect It.
  2. 2. 70 Billion app downloads in 2013
  3. 3. On avg. over 10 apps downloaded per human on earth
  4. 4. ~1.8 Million total apps on the 4 major app stores
  5. 5. The era of the get rich quick apps have long gone by.
  6. 6. In case of most apps, within a period of 3 months, over ¾th of their customer base is long gone
  7. 7. Take cues from a web marketer who focuses on his customer funnels.
  8. 8. •Build Virality into the Product. •Re-target your existing users. •Target potential users effectively on various platforms.
  9. 9. But remember, the avg. CAC increasing is >$1 and
  10. 10. So, before you spend on acquiring users estimate your Avg. Revenue Per User ( ARPU) ARPU > CAC
  11. 11. For profits to increase, work on your Active and ARPU Users
  12. 12. A small increase in your User retention number drastically increases your revenue. Installs *Retention =Active Users *ARPU =Revenue As is 100,000 15% 15000 $2 30,000 With 5% Increase in Retention 100,000 20% 20,000 $2.1 42,000
  13. 13. Not just that…. Higher retention and user satisfaction drastically reduces the CAC as Word-of-mouth increases.
  14. 14. How do I improve User Retention?
  15. 15. Create a world-class app and give your user a unique experience. There is no substitute to this.
  16. 16. Measure extensively all user activity. Try and identify pages which have a high drop-off and do split testing to weed out the reasons for the same. Use free tools such as Flurry for analytics.
  17. 17. Enable in-app feedback system: 1. Avoids negative ratings on the app store. 2. Get early info on bugs and issues the user faces. 3. Get suggestions and ideas for new functionalities. Use the app user for your research and survey actively to further improve the app. Ensure, you reply promptly and make the
  18. 18. Roll out app-updates constantly. 1. Continuous improvement of app is always appreciated by users. 2. Enables you to reach out to a dormant user on the device through notification
  19. 19. Segment users based on in-app behavior and offer unique customized experiences or offers.
  20. 20. Extensively use in-app messaging & push notifications. Studies from Airpush have shown that push notifications increases engagement 4x times and increases retention 2x times.
  21. 21. Engage on social media and build a following. Leverage impressions on various platforms to create better mindshare.
  22. 22. Add Gamification.
  23. 23. It’s ok to say that App Entrepreneurs have a retention problem rather than a discovery problem.
  24. 24. Thank You Email me: amarnath.vannarath@gmail.com Follow me: @freaks007

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