Terragon Group

How to Win Back Inactive Users and Boost Your Mobile App's Retention Rates

JUNE 14, 2024

A mobile app drawing customers to it

As the Mobile App ecosystem continues to grow, keeping users hooked is no easy feat. You’ve probably noticed that after the initial excitement of a new download, many users just… disappear. 

The statistics are stark: only 24.9% of users revisit an app the day after downloading it, and this figure drops to 9.4% after two weeks. By the 90-day mark, a staggering 71% of users have churned completely. That’s a big chunk of your marketing spend swirling down the drain.

So, How Do You Win Back Inactive Users?

With numerous apps available, users frequently switch to alternatives that offer superior features or user experience. Moreover, your top five competitors boast a 94% customer retention rate. How can your mobile app achieve similar success?

  • User Insight and Behavioral Analytics
    Understanding why users become inactive is the first step towards re-engaging them. Tools like Terragon’s Marketing Cloud (TMC) provide deep insights into user behavior, enabling you to tailor personalized content and recommendations, making the app more relevant and valuable to each user.

     

  • Targeted Notifications
    Send targeted messages using various marketing channels of your users preference such as pop-up notifications, in-app messaging, etc., based on user behavior.


    For Example: Imagine John, a customer who downloaded your app six months ago and initially engaged with it but has since become sporadic in his usage. By identifying that John has browsed the SME section of your app multiple times in a few days, you can send him a push notification offering free registration to the SME marketplace and a pre-qualified loan using TMC.

  • Loyalty Programs
    Offering incentives such as cashback, discounts, or exclusive access to new features can motivate inactive users to re-engage with your app. These incentives should be tailored to the user’s previous interactions and preferences for maximum impact.

    Example: If John remains inactive despite the initial notification, trigger incentives such as cashback offers on his next few transactions to encourage him to re-engage using TMC.

  • Cross-Selling and Upselling
    Utilize user data to cross-sell and upsell additional services or products., thereby enhancing their overall experience and increasing their engagement

    For instance, based on John’s previous transactions, you can send him notifications to make his utility payments, recharge his data, and airtime when TMC identifies that he is low.

Why Re-engaging Inactive Users is Critical

Implementing the above retention strategies for your mobile app will translate to:

  • Cost Efficiency
    Re-engaging your existing users is 5 to 25 times cheaper than acquiring a new one. Re-engaging inactive users who have already downloaded and interacted with your app is a cost-effective strategy that leverages your existing user base.

     

  • Increased Lifetime Value (LTV)
    Inactive users represent a pool of potential high-value customers. By re-engaging them, you can increase their lifetime value (LTV) to your app, maximizing revenue from users who might have otherwise been lost.
  • Enhanced User Experience
    Re-engaging users involves understanding their behavior and preferences, allowing you to offer a personalized experience. This not only boosts engagement but also builds user loyalty and satisfaction.

    In a nutshell, re-engaging inactive users is a necessity for the sustained growth of your mobile app. By understanding why users stop using apps and implementing targeted retention strategies, you can turn potential losses into gains, ensuring that your mobile marketing budget is well spent and your app continues to grow.

    Solutions like Terragon Marketing Cloud can play a crucial role in this process, helping to analyze user behavior, deliver personalized experiences, and keep users engaged with timely and relevant content.