Mobile App Retention Rate

Developing a mobile app is just the beginning of a long journey. The aim for developers and companies is to ensure that the app, once downloaded, continues to be used over the long term.

Retention rate is, therefore, a key indicator, revealing the app's ability to maintain user interest.

Even when equipped with advanced design and functionality, without an appropriate retention strategy, the number of active users may not increase as hoped.

User engagement, loyalty and retention in mobile apps

What is the Mobile App Retention Rate?

Retention rate is a mobile application term used to measure how many users continue to use an application after their first session.

This rate indicates the percentage of users who remain active on the application for a specific period after their first use. It is often expressed in terms of 30 days, 90 days, or annually.

Example:

Suppose 300 new users download an educational application at the beginning of a month. If 60 of those users are still using it regularly at the end of that month, then the app's retention rate for that month would be 20%.

This rate helps developers and marketing strategists understand how successful the app is in captivating and keeping its users engaged.

A low retention rate could indicate that the app is out of tune with users' expectations or needs or that it could benefit from improvement.

Differences between Retention, Engagement and Loyalty

In the context of mobile applications, retention, engagement and loyalty are often used. However, they represent distinct aspects of the relationship between the user and the application. 

Retention

Retention is the ability of an application to retain its users over a period of time. It is measured by the percentage of users who revisit the application after their first visit within a specific period. The retention rate is often used to assess the initial impression and ongoing usefulness of the application.

Engagement

Engagement refers to how often, for how long, and how well users interact with an application. An engaged user is someone who frequently uses the app, spends a considerable amount of time on it, and actively engages with its features. Metrics used to measure engagement can include the number of sessions per user, session duration, and interaction with significant application elements.

Loyalty

Loyalty is not just about retaining users, but also about building a strong and long-lasting relationship between the user and the application. Achieving this requires implementing targeted marketing strategies such as reward programs, personalized offers, and regular communications. The ultimate goal is to transform users into loyal supporters who will continue to use the app and are more likely to recommend it to others.

Relationship between these three concepts

Retention, engagement, and loyalty are related concepts that are distinct from one another. When users are retained, their engagement levels improve, which in turn indicates successful loyalty. Understanding users' motivations and behaviours is crucial to optimizing these aspects and meeting their expectations. You can implement some levers to enhance retention rates.

Improve your Mobile App Retention Rate

1. Simplify the Onboarding Process

The onboarding process of a mobile application is the initial set of steps a new user undergoes when they start using the application for the first time. This includes everything that helps the user become familiar with the application's interface and functionality, often through a series of welcome screens, interactive tutorials, or simple instructions.

Improving this integration process helps the user and reduces the number of users who abandon the application after the first use. Therefore, by making this first step more user-friendly and engaging, new users will more easily understand the application's value, which will motivate them to continue using it regularly.

2. User Feedback

Collecting feedback from your mobile app users on a regular basis can help you gain insights into what they like and dislike about the app. By taking this feedback into consideration and implementing changes accordingly, you can enhance the app's performance and increase user engagement.

When users observe that their suggestions are being taken seriously and incorporated into the app, they feel valued and are more inclined to continue using it.

3. Customization

Let's consider a music streaming app that customizes recommendations based on the genres and artists each user listens to frequently. For instance, if a user has a preference for jazz, the app could propose playlists featuring new jazz artists or recently recorded concerts.

However, it's crucial to strike a balance. Just because a user likes jazz doesn't mean that the app should suggest only jazz. To avoid restricting the user's experience to a single type of music that could ultimately lower their interest in the app, it's better to add a variety of genres to the recommendations.

An overly targeted approach can cause the user to get bored with repetitive recommendations, reducing overall engagement. To create a richer user experience that not only improves satisfaction but also increases user loyalty and retention, the app should integrate features that actively adapt and diversify suggestions.

By balancing personalization and exploration, the app can cater to users' stated tastes while also encouraging the exploration of new genres. This approach contributes to a more engaging user experience, which results in greater satisfaction and loyalty.

4. Push notifications

To improve push notifications without making them intrusive, we advise you to design them in such a way that they bring real added value to users. Here are some examples:

1. Notifications based on user behaviour:
   
   • Example: If a user uses a fitness app and logs his or her errands, a notification could be sent to encourage a new activity after a few days of inactivity. The notification could say: "Ready for a new run? Click here to plan your next outing!"
2. Customized alerts:
   
   • Example: In a news app, if the user follows certain news categories, such as technology or health, they receive alerts only for major events in these specific fields. The notification could be: "New breakthrough in medical technology, find out more now."
3. Time-based reminders:
   
   • Example: For a task management application, send reminders for tasks due soon. The notification could say, "Don't forget to finalize your report by 5 pm today."

Strategies for non-intrusive notifications

• Relevance: Ensure that notifications are relevant to the user's application activity. Avoid generic messages that may not apply to the user's current interests or needs.
• Moderate frequency: Limit the frequency of notifications to avoid overwhelming the user. Too many notifications can lead to alerts being turned off.
• Opt-out: Offer users the opportunity to choose the types of notifications they wish to receive and their frequency, respecting their preference and reducing the risk of them leaving the application.

5. Make your app fun like a game

By integrating playful elements, you can make your app more engaging and encourage users to return more often, thus improving retention rates.

Common gamification mechanisms:

Points system: Award points for specific actions in the app, such as completing profiles or sharing content. These points can then be exchanged for rewards.

Badges and trophies: Offer badges or trophies for specific achievements in the mobile app. This can include badges for reaching certain milestones or for participation in special events.

Leaderboards: Use leaderboards to encourage healthy competition between users. This can be particularly useful in apps that include performance elements or scores.

Challenges and missions: Regularly offer new challenges or missions that users can complete to earn special rewards. This helps maintain interest and commitment over the long term.

6. Generate revenue with your app

Integrating revenue opportunities for users can be a great way to increase engagement and retention. Like TikTok, which monetizes videos, or apps that reward physical activity, this strategy can enhance the user experience and increase the app's popularity.

1. Advertising revenue sharing:
   
   • How: Users create content that attracts visitors, and the app shares the advertising revenue generated by these visits.
   • Example: TikTok offers a share of advertising revenue to creators whose videos attract a high number of views and engagements.
2. Activity rewards :
   
   • How: Apps encourage physical activity by distributing rewards, which can be monetized or exchanged for products.
   • Example: Fitness apps that pay users based on kilometres travelled or steps taken.
3. Tipping and donation system :
   
   • How: Allow users to receive tips or direct donations from other users in recognition of their work or performance in the app.
   • Example: Like Twitch, where viewers can send tips to content creators during broadcasts.
4. Subscriptions and premium content:

• • How: Offer users the opportunity to subscribe to premium content or additional features that enhance their experience.
  • Example: Meditation apps that provide advanced sessions to paying subscribers.

7. Regular updates

Continually updating the app with new features and bug fixes keeps it attractive and relevant. Each update is an opportunity to re-engage users.