Mobile App Churn Rate: What And How To Prevent

We keep saying that a smart marketing campaign means to combine user acquisition and retention into a single efficient plan. Additionally, you know all the details about converting people who download your app into loyal customers. Moreover, we spoke about reasons which determine users to uninstall your app. But, let’s cut out the root of evil. There is an important metric which should always be in your permanent control. That is mobile app churn rate. If we made you curious by now, you can read further for efficient weapons to minimize this enemy.

What Is Churn?

To start your battle against churn rate, you need to really understand what it is and how to calculate it. In simple terms, churn rate represents the percentage of users that abandon your app in a period of time. Because churn is the opposite of retention rate, an easy way to calculate it is to use the following formula:

Image Source: https://www.appboy.com/blog/essential-mobile-app-metrics-formulas/

Example: If Retention Rate = 30%,
then Churn Rate = 1 – .30 = 70%

Identify Reasons

Moving on, you have to notice the elements that make your opponent so powerful.

Where to Look?

So, put on your spy – glasses and search everywhere, especially in:

In – App Events

In – app events are users’ actions which describe their activity inside of your app. Tracking basic in – app events like the number of opens, registrations or purchases or more advanced ones such as tutorial completion, achieved the level and social sharing is a great solution to discover how to optimize your strategy. We gathered a list with the most powerful tools for helping you.

Image Source: https://www.acquireretainengage.com/wp-content/uploads/2016/04/Appsflyer.pdf

 

Engagement Rates

After investing all your efforts at engaging users, make sure you measure everything to see what works and what doesn’t. You need to tailor all your campaigns according to your app category and your customers’ needs.

User Segments

User segments allow you to determine the right strategy for every group of people that use your app. Since your audience is not homogeneous you have to find solutions to avoid app abandonment for all types of users.

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Gather Feedback from Every Possible Channel

All warriors have to stop before the battle for getting insights about strategic movements. For this stage, you have our previous article where we talked about the most efficient channels for bonding with users. Social media, email surveys and in – app chat are not the only techniques available in your attempt to understand customers’ opinion but they really work and they can help you to obtain the data you need to move forward in your plan to reduce churn rate.

4 Ways To Eliminate Churn Reasons

Now, let’s take our weapons and prepare them for the ultimate fight.

1. Identify and Re – Engage Who Are Slipping Away

You must begin your strategy with the users that are about to churn. You have to act fast before losing them forever. In order to discover your most urgent targets, you need to track uninstalls. We talked about tracking tools and you are free to choose the one you consider suitable for your app.

2. Personalize Your Marketing Efforts

After making sure that the most dangerous group of all users, the ones that were about to churn are back into your app and enjoying their experience is time to concentrate your efforts on the rest of your audience who like your app but for one reason or another don’t convert.

Image Source: http://geoawesomeness.com/knowledge-base/location-based-marketing/location-based-marketing-the-concept/

Contextual Marketing
Providing the right context for your customer is the key to keep them engaged and to empower your efforts for preventing churn. Serving the right ads to the right users in the right moment is the solution to your victory. For more clues on how to manage that, you can consult our article Mobile Advertising: Benefits Of Providing Right Context.

Location Based Marketing
Location Based Marketing is an entire guide for personalizing your marketing strategy along with the best practices in applying this technique. Users are expecting to be treated in a special way so you need to provide them that feeling if you want them to become your allies in this hard battle. There are many types of location-based advertising but the trick is to select the one that serves best your purpose.

Image Source: http://www.placecast.net/location-native-mobile-advertising.html

Rich Notifications
Rich push notifications are considered the must have in every strategy. Besides the engaging character of rich push notifications, the attractive aspect is generated by images, animations, audio and video elements. But like with all good things moderation is the secret word. If you attack your customers with useless information it doesn’t matter how well it is presented. You will only make them angry and you will see the reverse of your goal.

Image Source: https://www.slideshare.net/ErdemYlmaz1/advanced-rich-push-notifications

 

3. Rethink Your Value Proposition

We need to remind you that the most valuable weapon to fight against churn effects is your app. So, you need to make sure that customers use it for the purpose you created. The reason why users will continue to come back to your app is that it solves a problem for them. Again, analyze users’ actions and observe if your app’s core function is really highlighted by the interface.

4. Make Use of Predictive Analytics

Every time you need more power you will find it in detailed reports which show you what will happen next. It is imperative to consider some methods for preventing users to abandon your creation than to think about new ways to bring them back into your app. Being a step-in front of your opponent (churn rate) will allow you to attack it before its first action.

FINAL THOUGHTS

Today we gathered a lot of information mentioned in our previous blog posts because all these efforts come to one important goal, user retention. In order to reach it you must reduce churn rate. Taking care of users is not a new thing for our fighters but analyzing customers’ behavior will make you understand their next action and if that is to abandon your app you will be ready to respond them and to return your app in their list of favorites.

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