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What is the Significance Of App Retention Rates in the Mobile Apps Ecosystem?


Mobile apps, on average, have a 30-day Retention Rate of 42 percent and a 90-day Retention Rate of 25 percent, though specific standards differ by industry. The typical 30-day rate varies by industry, ranging from 27% to 43%, while it goes from 32% to 66% for higher-performing apps. If you think the main pain concerns for app marketers today are lack of user engagement and attrition, you’re right.

These staggering figures present an enticing picture:

  • Within the first month of being downloaded, one out of every two apps is uninstalled, with “not in use” being the most common cause (39.9 percent).
  • 90% of users who regularly interact with an app (even once a week) tend to stay.

Users have nearly limitless possibilities with 2.89 million apps in Google Play and 1.96 million apps in the App Store. Suppose you don’t satisfy your users’ rising expectations; you’ll see many of them go MIA (= low retention rates) or, worse, jump ship (= high uninstall rates). This is why you need to pay attention to app retention rates and do the needful to make it work. With that stated, let’s jump into this blog to understand the significance of app retention rates in the mobile app ecosystem. 

Picture Credits – Unsplash

What is App Retention Rates?

The app retention rates are the percentage of users who return to an app within a certain period of time. App retention rates are a key metric for understanding how well your apps are performing. They can help you get insights into what features of your app might be causing users to leave, and which features might be keeping them engaged. 

What Affects App Retention Rates?

App retention rates are the percentage of individuals who continue to use an app after being installed. The higher the app retention rate, the more likely consumers will use the app again. The most important factors in determining a user’s likelihood to keep using an app are:

  • The user’s experience with the product
  • The quality of the product
  • Whether or not they found what they were looking for
  • What other apps they have installed on their device
  • How many times they have used the product within a certain time frame

Why Should I Care About My Mobile App Download & Uninstall Rates?

With over 2 million apps accessible in the Google Play Store alone, the mobile application business is competitive. The value of the mobile app business exceeds $100 billion. With the growing rivalry among apps, app developers must understand their download and uninstall rates for their mobile apps. This has resulted in a situation where, to succeed, you must build your product in such a way that it stands out from the crowd.

For various reasons, knowing how many people are downloading and installing/uninstalling your mobile app is crucial. Download and install rates can help you figure out how well your product compares to competitors and whether there are any aspects that people dislike. They can also be used to determine which features your target demographic would like to see more of. It also shows you which features are popular with your users, which features aren’t, how frequently people use the app, and more. 

Categories of App Retention Rate Data

When it comes to measuring marketing performance, marketers should be aware of several types of retention rate statistics. There are two categories of data: Quantitative and Qualitative

  1. On a one-time basis
  2. On a day-to-day basis.

Users are asked if they have used the app in the previous 24 hours, 30 days, or any other time frame to collect one-time data. Users are asked if they have used the app in the last 24 hours, 30 days, or any other period to collect day-to-day data.

Picture Credits – Unsplash

What are the Most Common Reasons for Low App Retention?

Users uninstall apps for a variety of reasons. One of the most prevalent causes is discovering several problems or malfunctions in the program. Another common explanation is that they find out that the app is not what they expected. Other common causes include a lack of features and value, few updates, and excessive advertising.

Because of their lack of popularity or users dislike the design, certain apps have a high churn rate. Some apps have a high churn rate when users discover they don’t operate with their device or operating system. To lower your churn rate, make sure your app is compatible with various devices and operating systems and provide your users with more features to keep them interested in the app for longer.

How to Increase Your App Retention Rates with 3 Unique Strategies?

There are many apps in the app store competing with one other. The most popular and successful ones have a high retention rate, suggesting that many users continue to use their apps. Keeping people engaged in an app is challenging when so many other apps are out there in the market that is fascinating, enjoyable, or helpful. 

There are, however, three ways that can help you improve app retention rates. Viz:

1) Provide In-App Purchases: Many applications provide premium content in exchange for in-app purchases, such as subscriptions or additional capabilities that the user may require. In this manner, you’ll be able to provide something valuable for a reasonable price while also maintaining consumer interest in your product.

2) Use Push Notifications: Push notifications are helpful because they allow you to send information to a user without requiring them to take any action. Many apps employ this method to notify users when they have progressed to the next level or have gained a new follower.

3) Offer Live Support: Several applications provide live chat or phone support that may be accessed directly within the app for individuals who require assistance. This is a fantastic approach for users to receive help with whatever they need quickly and easily.

The Importance of a Strong App Retention Strategy for Any New Mobile Tech Company

As the app business is so competitive, staying afloat is challenging without a solid retention plan. Within the first three days of being downloaded, the average app loses 77% of its users.

You must ensure that your apps are continually updated with new features and upgrades to remain relevant and profitable. You must also ensure that they are simple to use and offer a positive customer experience. 

Any new startup in the mobile tech area needs a solid app retention strategy. It is the most effective technique to ensure that your product succeeds and thrives. 

Here are a few pointers to help you develop an effective app retention strategy

  1. App Marketing: There are various ways to market your app, but in-app promotions are one of the most effective. Offering discounts, special deals, or other incentives can persuade customers to return to your app. Push alerts and email marketing campaigns can also be used to remind consumers about your app and what it has to offer.
  2. User Engagement: Providing a seamless and personalized experience is a great approach to keep users using your app. Offering customization options and user-friendly features and games, prizes, and other interactive features to keep users interested are all examples of this.
  3. User Experience: It’s critical that your app is visually beautiful and simple to use from beginning to end, with a user-friendly interface. Users should be able to explore it effortlessly and intuitively without any problems.

Picture Credits – Unsplash

Winding Up…

Mobile apps are constantly competing with each other to win users’ attention. One of the most important aspects that an app needs to focus on is retention. If an app cannot retain its user base, it will start losing out on potential revenue and eventually fade away. It is influenced by several factors, including the app’s features, how often we use it, how often we open it, and so on. Retention rates differ by category, as well as by country, and are determined by the type of person you target. App retention rates are an essential indicator for determining your app’s performance. It’s easier to optimize for retention rates and improve your app if you know what they are. The key to a successful mobile app retention rate lies in its ability to engage its audience and make them come back for more. The above-discussed strategies should have given a clear idea of the dos and don’t to increase the app retention rates, however, we must recognize that there is no one-size-fits-all solution to app retention. 

Are you worried about your mobile app retention rate? Reach out to us. Let’s discuss novel ways to keep your mobile app users engaged and increase app retention rates.


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