5 Strategies to Uplift User Retention Rate of Your App

By Harikrishna Kundariya Mobile April 16, 2019 10 min read 624 Views

The app retention rate is the increase in the audience’s engagement in the application over some time. Also, it means the margin of people that uses the application for availing benefits from it.

The retention rate increases when the application satisfies the audience’s needs. The app owner has to think of a unique idea that serves best to the market public’s need.

You might have seen apps like grocery, cab services, social media that have a high user retention rate. These are the app that holds the customer and increase the engagement rate.

Let’s ask a few questions to ourselves before coming up with the main ideology behind the retention rate also, how a Mobile App Development Company USA can execute the application.

1. Why app retention rate matter?

User retention rate plays an important role in deciding the acceptance of an application. If the requirements are available with a single click, then it will be preferable.

The application which saves the time of the user is preferable in today’s busy life. And, this is the time when one can build an application which serves the general public.

The user retention rate is a successful method for retaining existing users and uplift user loyalty. It represents the maximum number of times a single user comes back to the app for availing the service.

“Breaking down the recipe of Samosa’s success” is a theory that depicts the above idea.

According to this theory, a new customer is difficult to convince for the use of the application.

While the existing customers are familiar with the app, they can be the biggest revenue generator.

A change in user-responsive percentage can bring a lot of change in revenue generation.

There are certain measures with which one can track the user retention rates. These include range retention, rolling retention, and bracket retention.

2. Which different verticals have the highest and lowest user retention?

Following are the verticals which might have the highest user retention rate depending upon their user’s preference:

  • Grocery
  • Education / E-learning
  • Social Media
  • Cab services
  • Restaurant

The users differ in the above services because of the nature of the service. For example, a housewife is not going to use the e-learning portal; it will always have a student as a user. Similarly, a grocery mart app will have the highest number of female users.

The ratio is never the same, and that is why we cannot differentiate between the users. The approximate figures for the usage of the application are as follows:

According to sources, an average user retention ratio across the industries is less than 20%. Also, there is an exception that has more than the average user retention rates, i.e., 25%, which is the finance industry.

The Internet has made us dependent, and due to that, we have now become started easing our part of our lives. Everything on a handy device has saved our lot of time and energy.

According to the study, cab services and grocery mart apps are the ones that have a maximum number of users. And, it can enhance their customer service by offering discounts, rewards, etc

Talking about the low user engagement ratio, few apps have a low retention rate. Those apps are personalization, medicine app, etc. which have once in month app open ratio.

With ongoing competition in the mobile app industry, it is difficult to retain the users. The challenging part is to think of an out of the box idea to retain the user.

3. The Strategies To Uplift User Retention

Let us now focus on the app retention strategies that can improvise the growth of the user:

Strategies To Increase User Retention

3.1 Knowing of User Need

The first thing while building an app is to understand customer needs. After understanding their needs, you can decide on building an app for them.

The success of it depends upon how an app can meet the need of the customer. If the app fails to meet the need of the user, then there are high chances of the app being the least preferable.

The app owner has to brainstorm new features that can ease the user’s life.

The new feature should be potential enough to hold the customers and should help them in building a strong application.

The two important factors are as follows:

  • Identifying new channels and bringing a new customer.
  • Retaining the existing user by updating the app with new features.

3.2 Value user credentials, time and resources

You should always value the user’s time and privacy because that’s an important factor while building an app.

These factors become trust factors in the minds of users. And, it is vital to give importance to their credentials, time and privacy.

Nobody wants an app that is clumsy or is not easy to understand. Every user prefers to have an app that has smooth and simple access to the app.

Also, an app that asks for too many permission the personal data can lead a user to irritation, which may end up in uninstalling the application.

3.3 Provide Reward points to loyal customers

Rewarding is an effective way of appreciating loyal customers. They will be much more happy in receiving such gestures, and that creates a strong bond. Mobile Advertising Tools can help you in this regard.

There are multiple ways of rewarding customers, such as:

  • Providing loyalty points
  • Gift vouchers
  • Special discounts for prime members
  • Pre-sale benefits for prime members
  • Quick and efficient delivery

3.4 Effective Engagement technique

The user should be aware of what the app development progress is, and what’s new is coming up. The push notification can make users aware of the upcoming changes in the app.

The push notification has proven to be an effective way in notifying the user about the updates.

You can also send birthday, anniversary, sending a reminder, and order updates message as a gesture.

This can leave a positive impression in the minds of the customer.

3.5 Customer Support and Feedback process

Another way to retain customers to the app is as follows:

  • Ask for suggestions or feedback from the customer
  • Acknowledge their valuable suggestions by sending them thanking email
  • Put in place the suggestion or feedback, if appropriate.
  • Provide them rewards points for contributing in the betterment of application

Read also: Wanna Increase User Retention With Mobile App Onboarding? Here are few To-dos.

4. What factors can decrease your app’s retention rate?

Multiple factors can hamper the user retention rate. From slow loading to not performing up to the expectations, several factors can lose the customers:

Factors That Decrease App Retention Rate

Bad user experience:

The application is always built from scratch which contains a lot of changes. These changes are header, footer, body, etc.

The company builds an app, and they can deliver whatever experience they want to deliver to their clients.

The chances of success or failure of the app are dependent on the user experience. If the app fails to impress the user, then the user engagement rate decreases.

Old content:

The content should be fresh and updated as it plays an important role in engaging users. With the appropriate content or regular updates, the user can reap the advantage of the app.

The gaming apps are the best example of it, as the user will play and leave the game. Here, the user will uninstall the gaming app if there are no updates at regular intervals of time.

Conversion funnel:

The users are the ones who are the sole revenue generator for the app owner. And, if the user wants to buy your app, the process should be hassle-free.

While building an app, the developer should keep in mind in making the purchase option easy going. The more time, the lesser the retention rate.

The more time an app will take to process the purchase function, the more chances of a decrease in user engagement ratio.

Difficulty in registration or sign up the process:

Another difficulty comes when the application has a sign-up function.

If the sign-up function is way too complicated, then there are chances of the app being either:

  • Uninstall
  • A user might find an alternative of the app

The sing up function should be quick and smooth as the customer doesn’t like to waste their time in signing up.

5. Key Highlight Of App Retention

Key Highlights Of App Retention

In-App Analytics:

In-app analytics provides pieces of information about the user retention rate, which are as follows:

  • Application usage
  • Device and Operating system
  • Application performance and movement

App Crash Records:

The system recognizes and records the application crash sessions. Also, with the help of monitoring, you can check the source or cause of the app crash.

Transformation funnels: The system allows you to change funnels inside, track the rates, and a brief explanation about the success or failure of each process.

Also, it comes with the capacity to present the average finish time for each progression by a user.

Auto-Detect UI problems:

Swiping, scrolling or tapping are some of the unnecessary activities. These activities should not continue for a longer duration.

These types of activities may provoke you to modify and upgrade the User interface.

Simple Setup and Integration:

You can fetch app crash data by dropping the SDK file into your app of any third-party SDKs.

6. Development of Business Apps for both the platforms: Android & iOS

Developing an app with unique ideas involves a lot of investment in time, money, and research.

Also, an app that should be compatible across the platform is another difficult task, but a very well-expert developer can do within no time.

An app that is compatible with ample features and is also smooth in accessing is preferable.

The biggest advantage of gaining new users is by making an app quick in action and performance.

How much does it cost to develop a mobile application is the big question? And, the answer to the question is the inclusion of several factors such as regional differences, pricing, complexity, etc.

Pack Up

The user retention rate for an application is important because that decides the success or failure of the application.

If an app owner plans to develop an app that becomes necessities for the user, it is surely going to be accepted in the market.

Before building an app, the app owner has to do market research about the general public’s needs. And, then the owner should decide on the niche on which a is to be built.

There are many user retention strategies that can contribute in the uplifting the user retention rate of any application. These engagement strategies are important as it increases the user retention rate.

Building up a business app requires a great deal of exertion, cash and time. User acquisition through the different channels and distribute the app into the market takes further speculation. User retention is a critical measurement that you need to keep in mind.

Hire Mobile App Developers from eSparkBiz to craft an app that becomes primary necessities for the user. With over 8 years of experience in building and developing mobile apps, we have delivered over 1000+ projects with quality being the topmost priority for us.

Disclaimer: We at eSparkBiz Technologies have created this blog with all the consideration and utmost care. We always strive for excellence in each of our blog posts and for that purpose, we ensure that all the information written in the blog is complete, correct, comprehensible, accurate and up-to-date. However, we can’t always guarantee that the information written in the blog correct, accurate or up-to-date. Therefore, we always advise our valuable readers not to take any kind of decisions based on the information as well as the views shared by our authors. The readers should always conduct an in-depth research before making the final decision. In addition to these, all the logos, 3rd part trademarks and screenshots of websites & mobile apps are the property of the individual owners. We’re not associated with any of them.

Harikrishna Kundariya

Harikrishna Kundariya

Harikrishna Kundariya, a marketer, developer, app lover, technology savvy, designer, co-founder, Director of eSparkBiz @Mobile App Development Company where you can Hire Mobile App Developer. His 8+ experience enables him to provide digital solutions to new start-ups based on app development.

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