As individuals, everyone has ideas they wish to turn into businesses. With more than a million B2C applications in the mobile app stores, we know individuals have invested in their statements to transform them into overwhelming applications that can change the way we live. All is well until they turn their eyes to their analytical sheets and switch to reality!
The outwit of these analytical numbers is that you cannot afford to overlook them – being significantly important metrics that measure your product’s value.
Returning to Fred Wilson’s days, his 30/10/10 ratio rule featured points to exhibit retention statistics. This rule stated that 30% of the registered users would use the app once a month, 10% will use the app daily, and only 1% at any given time. However, with innovation being a constant, these numbers may not hold for all business models today.
According to Flurry, an average mobile application retains 36% of its new users after the first installation. This figure keeps declining gradually with time, and just 1 in 10 users stand a chance to open your app after a year. Losing 80% of your acquired users was considered a huge loss; today, users who have opened your app 11 times in a month are your best catch. Hoping the 7-day retention to go up to a maximum of 30%.
With competition and the threat of substitutes at a ‘high’ status today, installing and uninstalling has become a matter of few taps on your phone. Most apps are free, so the overall cost of switching is almost nil.
Another primary reason is the lack of a filter on users’ quality that the innovators are acquiring. The majority of the time, users don’t possess the required information. Also, they don’t realize whether they really need the app they have downloaded. Since they are not spending any time or money before becoming your user, it makes them users with ‘zero loyalty.’
What retention are you measuring?
Retention can be defined in different ways for different business models. Varying from rolling retention, full retention, and return retention, the pattern of analyzing confinement changes every time. Figuring out the right way to understand ‘your type’ of retention is the key to a successful measurement. However, from a business perspective, return retention proves to be the best form. It is used for calculating the number of people coming back to your app.
Read Also: How to improve retention strategies in 2021
- The supply of apps in the mobile world is way ahead of the demand. However, the time spent by users on mobile has significantly increased.
- Segmenting your users and treating each segment individually is your tool for maximum customer retention.
- Create the everlasting impression – Focus more on users on the first 3-7 days of their installation and differentiate their in-app messages, notifications, and features from others
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