How To Improve Customer Retention And Loyalty For Your Mobile App
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How To Improve Customer Retention And Loyalty For Your Mobile App

So you have created a great mobile app, started marketing it and are generating downloads, but your customers just aren’t sticking around - now what?


High customer retention rates and loyalty are essential when it comes to the long-term success of your business. Once you have found the formula that makes users not only convert but also use your mobile app regularly, you have got yourself a great deal.


Why should you focus on customer retention when your acquisition strategy is yielding results, you ask?


It’s simple. On average, it costs five times more to acquire a new customer than it is to retain an existing one, and increasing customer retention by 5% can increase your profits between 25% and 95%.


Additionally, it will be much easier to be successful at selling to an existing customer (60-70% success rate) than it would be to sell to a new one (5-20% success rate).

User retention and customer loyalty.

Before looking at driving repeat purchases, you need to understand why and where in your funnel or app your users drop off. If you know where people are losing interest, fix it and watch your users’ lifetime value rise. If you are unsure, follow these tips:



Don’t be afraid to ask.

By reaching out to your users via email or within your app (while respecting data protection regulations of course), you will be able to much better understand their concerns, while simultaneously building relationships and trust with your customers.


A great way to get an honest response is to automatically serve a feedback form to anyone who unsubscribes. The longer you wait, the less accurate your feedback will be, and the smaller your number of responses will be.


Interacting with your users on social media is also a great, less invasive option. Don’t be afraid to post polls and question forms on your social media channels, then use the replies to better your user experience.


Listen.

People are very vocal about things they don’t like online. It is also very likely that whatever complaint your app is getting from one person is being silently shared by many other users. Listen to what they are saying about your app online and acknowledge it. Then, reply gracefully and offer a solution, a discount or an apology.

This small action might get you new users and even turn a customer who left into a loyal one - people like when a company listens to them because they feel understood and included. A great customer experience will do wonders for your acquisition and retention strategies.


Be careful when introducing new features.

Measure your responses carefully whenever you add new features to your app or platform. Your feature might seem great to some but not others. A great way to improve this process is to A/B test features before fully implementing them, and measuring as you go. This step might save you a lot of time, effort and money over time.


Value customer service.

For the same reasons that we’ve mentioned above, having outstanding customer service is the key to a healthy business strategy. It is estimated that 68% of users leave as a result of poor customer service. The last thing you want is to invest time and money into a product, only to drive your customers into the arms of the competition.


Make it as simple as possible for users to reach a customer service representative. Use a chat plug-in or Facebook messenger, so that they can quickly turn to you if they have a problem, instead of leaving altogether.


Develop a loyalty programme.

You want your users to become spokespeople for your brand. Every user is an influencer within their own circle, so they should be treated as such. By creating a loyalty or reward programme, you’re able to reward those who share your app with their friends and family, which will encourage them to continue supporting and favouring your brand. This will also allow you to track which customers are the most influential.


Know your users.

Get to know your users as soon as they sign up. Find the right balance on how much information you request as they sign up, without increasing the barrier-to-entry too much.


Asking a targeted question within your app, especially on new features, can also be an effective way to gather much-needed insight into what’s working and what isn’t.


Depending on who your app is aimed at, it might also be beneficial to start a Facebook group where they share experiences or discuss topics that are relevant to your mobile app. This can prove to be an incredibly valuable source of information for your business over time, and it can shorten your reaction time to a particular issue that your users might be experiencing.


Don’t underestimate good content.

Use your email list to share relevant content with your customer list, and to give back. Provide information, share interesting content and host giveaways. Your email list is already interested in your product, so why not use it to strengthen your relationship?


Showcase how you are improving your user experience.

Post about new features and changes if they are relevant to your audience - without getting too technical, of course. This can be a helpful tool to reengage and educate your audience while showing that your company cares and listens to its users.


Customer retention is all about working smarter, not harder. Show that your company cares and closely monitor how people respond and act upon any changes to your app’s user experience.


Work on keeping your existing users happy, while continuing your user acquisition journey in parallel, and watch your userbase grow.



Need help with app growth and customer retention?


Envision is a Mixpanel certified partner - find more information on this here.


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