High installs may be impressive, but if you can't retain your users in the long term, it's all for naught. The truth is that an estimated 47% of American app users uninstall their downloaded apps within just 30 days. This reality check underscores the importance of prioritizing app retention to increase user loyalty and revenue.

What Is App Retention?

App retention measures how many people continue using your app over time, serving as a crucial metric for monitoring user loyalty. A low retention rate can be a red flag indicating that either your product doesn't meet the needs of your target audience or the competition is offering something better than you. On the other hand, a high retention rate shows that customers are satisfied with your mobile app and value its offerings.

Why Is App Retention So Crucial?

As a product manager, there are numerous reasons why getting the best app retention rate possible must be one of your top priorities. For instance:

  • Increased Profitability: A higher retention rate directly impacts revenue growth, as retained users offer more opportunities for monetization.
  • Lower Acquisition and Churn Costs: It's significantly cheaper to retain existing users than to acquire new ones, with Harvard Business Review reporting that retaining customers can be 5-25 times less expensive than acquiring new ones.
  • Gain Competitive Advantage: Boosting retention rates establishes your app as a market leader, making it more challenging for competitors to gain traction and ultimately boosting your market share.
  • Product Improvement: A consistent user base provides invaluable feedback on features and areas that need improvement, allowing you to prioritize updates and enhancements that directly address users' needs.

The Importance of User Experience

A positive user experience is critical in increasing app retention. By offering value and a seamless experience, you're more likely to gain customer loyalty. Long-term users often become brand champions by recommending your app to others and writing glowing reviews, which can spread the word to new users. This advocacy strengthens your brand's position in the market.

Average App Retention Rates

In Q3 2023, the average retention rate for iOS apps was 23.9% after one day of installation and 3.7% after thirty days. For Android applications, retention rates were slightly lower, at 21% after one day and 5.6% after seven days. After 30 days, the retention rate for Android apps averaged approximately 2.61%. As such, iOS apps tend to have higher retention rates than Android apps.

How to Calculate App Retention

To measure your app's retention rate, use the following formula:

Daily Active Users (DAU) / Monthly Active Users (MAU) = App retention rate

Additionally, calculating your churn rate or the number of users you lose across a certain time is essential. You can calculate your app churn rate with the formula below:

(Number of Churned Customers ÷ Total Number of Customers at Start of Time Period) × 100

Boosting Retention: 10 Essential Tactics

Now that we've covered the importance of app retention, let's dive into the top tactics for increasing user engagement:

  1. Attract the Right Users: Focus on attracting users who are a good fit for your app to ensure long-term retention.
  2. [Insert subsequent tactics here]

By implementing these strategies and prioritizing a positive user experience, you'll be well on your way to boosting your app's retention rate and driving long-term growth and revenue.