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Likitha A
Likitha A August 23, 2022

Do you think it is possible to grow your app and business without adding a dime to your budget? Well, it is, and if you are wondering what the answer is, app retention!

According to Bain and Company, increasing customer retention rates by 5% can increase profits by 25% to 95%. Yes, we are startled too!

So the simple logic behind this is that if you can keep your existing app users engaged and coming back for more, your app value will grow immensely. It also means retaining a user is quite essential and cost-effective when compared to acquiring a new one.

This article will walk you through app user retention and the essential strategies to make your users flock back to your app.

What is the App Retention Rate, and how to calculate it?

App retention is nothing but getting users to use your app continuously and consistently over a long period. Therefore, it is a crucial metric to measure your app’s growth. 

Retention is measured by comparing the number of users at the beginning of a specific time frame (a week, a month, or a year) with the number of users using your app at the end of that time frame.

Also Read: A Complete Guide to Mobile App Engagement

App Retention Strategies for 2022

#1 Kickstart the journey with Seamless Onboarding

The onboarding phase is the user journey’s first and most critical phase. If you fail in this one, there is very little you can do in the following stages.

You must be careful with your onboarding process as it is the user’s first interaction with your app. Deliver a clear, seamless, and intuitive experience by building an engaging onboarding journey. Include intuitive app walkthroughs, accelerate feature adoption with interactive tutorials, and ease the navigation process with simple screen tips. 

Communicating your app’s unique value as quickly as possible is essential, but do it without overwhelming users with too many features and information. Onboarding is all about psychology, saving all the permissions, and signing up for a later stage. Build trust and give them a reason to return to your app. 

If you successfully give them the “aha moment,” they will realize how they can benefit from the app and why they should spend their time or money on it, leading to higher retention.

#2 Create fun experiences with Gamification

As we emphasize how your app needs to give users a reason to come back, gamification is the best way to encourage them to stay engaged and use the app regularly. 

Rewards and loyalty programs help in nurturing the users and in positive habit-making. These elements of gamification instill motivation and positively affect and change user behaviors. Eventually, this leads to users returning and using your app without daily reminders. 

For instance,  encourage users every time they complete a task by awarding them points that accumulate to unlock a new action/feature that eases their journey. It makes their experience fun and exciting. 

In an eCommerce app, you can give users points every time they make a purchase, and these points cumulatively can lead to discounts and cashback. This way, you can maintain a long-term relationship with your users.

#3 Communicate and Engage with Push Notifications and In-App Messages

Push notifications are the mightiest tool to engage and re-engage your app users, and In-app messages are excellent for enhancing the user journey within the app.

However, the power of push and in-app messages is often misused, leading to undesirable outcomes. 

Well, no one likes to be interrupted by irrelevant updates on their phone frequently. This approach will only lead to dissatisfaction and app abandonment. But, when done correctly, push notifications and in-app messages can catalyze effective user engagement and communication. 

Sending timely and relevant push notifications of informative, promotional, and transactional updates is an efficient way to drive them to your app and retain them. 

Additionally, In-App messages should be a natural app extension that can communicate essential updates like new features, rewards, deals, and offers. Make these messages actionable by adding CTAs and deep links for easier navigation. It builds trust in your app and promotes loyalty. 

The key is to say the right thing at the right time to the right person!

#4 Understand users better with Data Analytics and Segmentation

In this digital era, the only way to understand users, their behaviors, and preferences is by tracking the data from the beginning.

Gaining insights into their demographical, transactional, and behavioral data is essential for understanding them and getting them back. 

Analyzing this data will help in data segmentation which is grouping your users into different cohorts based on their data & activity. This approach will help you personalize their journey and send them contextual nudges to return to your app. 

This data can improve the user journey from all the touch points at each step. It can also be used for personalization, upselling, and cross-selling, massively increasing app retention! 

#5 Make their journey Memorable with Personalization. 

Imagine having to wear shoes that aren’t the right fit for you. Engaging users without personalization feels the same too. Why would a user come back to your app if all that you do is send irrelevant notifications or updates in bulk? 

Personalization is not just essential but has the power to decide the future of your business and plays a significant role in your app retention. 

With the power of data, personalize the user’s journey throughout. Deliver tailored experiences to the users by knowing who they are, where they come from, and what they expect from your app!

A good customer journey calls for a personalized and memorable experience!

#6 Know what your users think about your app with feedback surveys

Always remember that your app is for the users, and who better than them to take feedback from?

Foster a two-way conversation with your users and actively listen to what they say about your app. Good or bad, acting on this feedback is paramount, and it also makes them feel valued and boosts loyalty.

Quick surveys, ratings, reviews, and opinion polls are a great way to collect user feedback without boring them. This data empowers you to quickly drive feature improvements and enhance their app experience.

Keep measuring customer satisfaction using feedback surveys and NPS time & again to understand the users better! 

Conclusion

If you want people to consistently engage with your app for an extended period, then go all nine yards and have a solid retention strategy rather than just focusing on acquisition.

This can be possible by effective onboarding, nurturing the users, and engaging users from time to time. With a good retention rate, revenue compounds with time; the longer you keep your users, the more valuable they are to your business.

The Upshot.ai Advantage

Upshot.ai is an omnichannel, user engagement, and gamification platform that helps digital product owners and marketers improve product adoption and conversions.

With Upshot.ai, HealthTech, EdTech, and FinTech, firms can enhance their digital experiences with pre-built gamification features. It can provide personalized insights, actionable recommendations, and contextual nudges designed to deepen its relationship with its users. 

Book a demo of the most comprehensive user engagement and gamification platform to achieve your digital product goals. Join our communities for more insights, guides, and best practices that keep you updated with proven strategies and tips to supercharge your campaigns.

Also Read: Reasons why users uninstall the app and how Upshot.ai can help with user retention

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