Maximize Mobile App Retention: The Best Strategies for User Growth and Retention

In the competitive world of mobile apps, success is determined not only by the acquisition of new users, but primarily by how many users an app can retain in the long term. In this article, we'll take a look at the most effective strategies and practices to help you keep retention at its best.

What is retention and why is it important

Retention shows the number of users a mobile app can retain. It's a measure of how many users continue to use an app after they first download it, or after a certain period of time. A high retention rate indicates that users are finding lasting value in the app, while a low retention rate may indicate that users are losing interest or that the app is not meeting their needs.

Why is it important to track retention and strive for the highest retention rates? Because retaining existing users is significantly more cost-effective than acquiring new users. Studies have shown that improving retention rates by as little as 5% can lead to a 25-95% increase in revenue. This is largely due to the fact that long-term users are more likely to use premium features, make in-app purchases, and contribute to positive app awareness (which further drives organic growth).

If you want to learn more about retention, find out how it is measured and what other metrics are used to track retention, we have written an article on measuring retention.

Now let’s dive into specific strategies to help you maximize retention and keep your users engaged.

Onboarding

The onboarding process represents the user's first encounter with the application and is crucial in terms of retention (the lowest retention is usually recorded during the first opening of the application). It is therefore important to make onboarding as simple and user-friendly as possible. We have a few tips for an efficient onboarding process:

Don't force users to register right away

Requiring users to register before allowing them to try the app can have a negative impact on retention rates. If possible, it is best not to require registration at all in the initial phase. Allow users to explore and experience the value of the app without immediately committing to registration. In this way, users develop a relationship with the app and then see registration as a natural step that unlocks additional benefits and features.

Multiple registration options

Registration can also bring positives, such as obtaining contact details for better customer contact. In many cases, registration is also a necessity due to the nature of the application or legislation. So if you do require registration, make it as simple as possible and offer users the option to quickly register with, for example, a Google account, Apple ID or Facebook account.

Beware of long tutorials

Long tutorials that walk users through all the features of the app (and which cannot be skipped) are another part of the onboarding process that can have a negative impact on retention. Be sure not to dismiss onboarding tutorials, as they help users quickly understand the app's features and start using it effectively. However, some users prefer to try the app themselves and get familiar with it. Thus, a button to exit the tutorial should be a given feature.

Personalization

Personalization is one of the most effective tools for improving user experience and maintaining high retention. The level of personalization that can be implemented depends on the nature of the application, but we would be confident to say that most successful applications today use some form of personalization.

Personalization takes many different forms - from push notifications, to special offers and personalized recommendations, to personalized app interfaces. For personalization done right, data is the most important thing. By collecting and analyzing user data, you can create personalized experiences that best match your users' preferences.

User engagement

The reason for low retention may not only be user dissatisfaction with the app, but also the fact that users forget about certain apps or postpone using them. Therefore, it is important to keep your users engaged, involved and remind them of the app. Notifications or in-app messages can help significantly with this.

Push notifications

Push notifications play an important role in communicating with users outside of the app and by implementing them you can significantly contribute to increasing user retention. Push notifications that are personalized (for example, based on geolocation, time, or user behavior) can further increase retention.

However, here it is important to pay attention to the timing, content and frequency of notifications. Too many notifications, or irrelevant notifications, can lead users to stop paying attention to notifications or deactivate them. In worse cases, they can lead users to delete the app.

In-App messaging

Unlike push notifications, which are displayed outside the app and can be easily ignored or dismissed, in-app messages are more contextual as they are displayed directly within the app when the user is actively using it. Compared to push notifications, they are also less distracting for the user.

In-app ad optimization

If you're monetizing with in-app ads, optimize them. Ads are generally distracting to users, but some types of ads can make the app so unpleasant to use that they lead users to uninstall the app. Therefore, it's a good idea to implement ads in your app in a way that minimally interferes with the UX while being effective in terms of the performance of the ads themselves.

Testing

As you develop and update your app, we recommend regularly running different types of tests to help you understand how changes to your app affect your users' behavior. One of the most effective methods of testing is A/B testing, in which two variations of a certain element of the app (for example, design, text or functionality) are presented to different groups of users. This testing makes it possible to compare which variant better fulfills the set goals (for example, increasing conversions or user engagement). We recommend using A/B testing especially for the onboarding process, placement of ads in the application, user experience and design, frequency of push notifications, new features and calls to action (CTA).

In addition to A/B testing, there are other methods such as user tests or beta testing that can provide an even more detailed view of how users interact with your app in real-world conditions.

Don't forget the feedback

Feedback, especially negative feedback, is very important for improving user retention rates, so don't take it lightly. Offer simple ways for your app users to share feedback, such as in-app surveys, contacting support and your company in the app, or through newsletters. However, be careful with newsletters and in-app surveys, as they can be distracting to users and make retention worse. Also pay attention to your app's ratings in the app stores (Google Play, App store) and online forums, social networks and reviews (if your app has already become widely known). Honest and relevant feedback can often provide more information than several tests.

Make sure the app works as it should

There is usually a strong correlation between application error rate and churn rate (the opposite of retention). Make sure your app runs as smoothly as possible and monitor the crash rate.

Analyze the user journey

Create a map or funnel of the user journey and analyse retention at different stages of the journey. This will help you better identify critical points and understand where your application is specifically losing users.

• Discovery and Awareness: User discovers the app
  
• Reflection: User considers downloading and using the app
• Acquisition: User installs and launches the app
• Onboarding: User signs up and discovers the app's features
• Retention and engagement: User returns to the app and uses it regularly

Choose the right approach

Good retention rates are not just about keeping users coming back to an app, but about creating a consistent and meaningful experience that ideally encourages them to make the app part of their daily or weekly routine. The state where using a mobile app becomes a routine for the user is the goal of many developers. This is because it offers a wide range of monetisation opportunities due to the high number of long-term active users. However, creating such an app requires significant effort and this principle cannot be applied to all types of apps.

In short, it is important to take into account the nature of the specific app - a food ordering app will require a different approach than a dating app or an app focused on measuring sports performance.

Conclusion

Keeping users engaged in your mobile app doesn't have to be difficult when you focus on what brings value to them. It's important to offer a pleasant user experience and, above all, respond to feedback. This will give you better insight into what your users really want.

We hope this article has helped you broaden your horizons on approaches and strategies for user retention. If you need help optimizing retention in your mobile app, don't hesitate to contact us - we'd be happy to help you find the best customized solution.