Encourage three app sessions in first three days to drive retention: Localytics
Only 29 percent of application users will become inactive if marketers can successfully encourage them to have three sessions in the first three days after downloading an app, according to new research from Localytics.
As the number of apps continues to grow, inactive users continues to a major problem for marketers, with 58 percent becoming inactive in the first 30 days and 75 percent over the first three months, according to Localytics. However, Localytics has discovered there is a high correlation between app success and how often an app is launched in the first few days it is downloaded, meaning marketers should be focused on strategies to engage users during this crucial period.
?This research shows that app marketing is now about more than just the initial download and should be addressing the full lifecycle of an app user, especially during those first critical days,? said Josh Todd, chief marketing officer of Localytics.
?More than ever, app marketers need to utilize tactics like predictive app marketing and push notifications to engage their users from the get-go, encouraging them to stick around past the initial download. In short, the more sessions, the less churn,? he said.
Churn rate
Measuring the turnover rate for app users within a 30-day window is the most common benchmark for retention, but Localytics research found that more critical window to concentrate on is the first three days after an app is downloaded.
This is because only 29 percent of users will become inactive if marketers can encourage them to have three sessions in the first three days.
The data suggests that three sessions per month is the minimum number a user must complete in order to suggest that they have seen value in an app and can be considered an active user.
?As always, it?s startling to see how high churn rates are for users in the first few months and how dramatically those rates can be decreased through the right app marketing strategies,? Mr. Todd said. ?Our data shows that apps that send in-app messages show 2-3.5x higher user retention and 27 percent more app launches than apps that do not.?
In-app messaging
To encourage three sessions in the first few days, Localytics offers three tips
The first is to leverage in-app messaging to nail the on boarding experience. Apps that send in-app messages show up to a 3.5 times higher user retention rate and have 27 percent more app launches. These results point how in-app messages can help users navigate their experience and incentivize future use through special offers
Localytics also recommends that marketers use remarketing to remind users of an app. With mobile users spending 80 percent of their time in five apps and Facebook often one of these, marketers can target users on Facebook to drive them back to the brand?s app.
The final tip is to leverage user data to create a personalized offer - being careful to not be creepy by over personalizing - such as a new friend promotion using a targeted push notification or email message.
Taking a broader look at the issue, Localytics found that 75 percent of users who log just one app session in the first 30 days will become inactive while only 14 percent of those who complete 11 more sessions will become inactive.
?Our research reinforces just how tough it is for app owners to hang on to their users, and reduce churn, without the right tools and strategies,? Mr. Todd said. ?The 3X3 rule offers ways for them to ensure that they?re encouraging three sessions within the first three days -- the magic number for overcoming the critical hurdle of retaining users.?
Final Take
Chantal Tode is senior editor on Mobile Marketer, New York