In today's competitive mobile app landscape, it's no longer enough to simply create an app and hope users stick around. Instead, developers must focus on crafting an exceptional user experience (UX) that drives retention and keeps users engaged. But what does a successful app retention strategy look like? In this article, we'll explore five case studies of B2C companies that have mastered the art of retaining mobile app users.

Understanding Mobile App Retention Terms

Before diving into the strategies, it's essential to understand the key terminology in mobile app retention. Here are some terms you should know:

  • Active user: A user who engages with a mobile app within a given period.
  • App retention: The percentage of users who return over a specific time frame.
  • Churn: The percentage of users who don't return to the app over a given period (the inverse of retention).
  • DAU/MAU ratio: A metric measuring how active monthly users are on a daily basis, also known as "app stickiness."
  • User acquisition: Any strategy used to drive app downloads.

The Challenge of Mobile App Retention

Unfortunately, most app users churn, either uninstalling the app or simply not reopening it. According to a 2019 study of 37,000 apps across industries, one month after download, only ~42% of users stuck around, while ~58% churned. Three months later, this number drops to ~27%. Statista's research on global app retention in Q3 2022 paints an even grimmer picture: On Day 1, ~26% of iOS users and ~23% of Android users stayed, but by Day 30, only ~4% of iOS users and ~3% of Android users were still engaged.

Why Do Users Churn?

There are many reasons why users churn, including:

  • User experience (UX): The app may be buggy or confusing, making it difficult for users to take the intended action.
  • Low value: The app doesn't solve pain points in target users' daily lives.
  • Lack of incentives: Users might not be compelled to use a new app, leading to forgetfulness.

5 Companies with Strong App Retention Strategies

Creating an engaging user experience is crucial for app retention. Here are five companies that have developed unique strategies to retain their mobile app users:

#1: Chick Fil A

Tactic: Rewarding engagement

Chick Fil A rewards customers who engage in the app with promotions and points (10 points for $1). Users can redeem their points at a relatively low threshold (200 points, or $20).

#2: CVS

Tactic: One easy platform

CVS offers a streamlined app experience, allowing users to accomplish all their health-related tasks – scheduling appointments, finding deals, refilling prescriptions – in one place.

#3: Starbucks

Tactic: Gamification

Starbucks customers earn points (stars) for every dollar spent. The company gives users boosts and bonuses toward earning rewards, such as "Double Star days" and "Bonus Star challenges."

#4: Venmo

Tactic: Fun

Venmo makes payments entertaining by allowing users to like and comment, use emojis and gifs. This tactic may not fit every brand, but for a B2C company with a younger target demographic, these special touches shape an engaging experience.

#5: Waze

Tactic: Customer-centered value proposition

Waze differentiated itself in the navigation app market by solving pain points that giants like Google and Apple hadn't touched. The app helps drivers avoid speeding tickets, alerts them to obstructions ahead, and reroutes them based on live traffic reports.

By understanding these case studies and implementing strategies tailored to your business, you can boost mobile app retention and create a loyal user base.