In a further example of the maturing consumption habits of app users, app analytics company, Localytics reported that app retention is increasing across the mobile app market.
These statistics show a clear shift from the initial focus on download numbers to a more mature approach that considers both customer acquisition and retention.
Localytics research published in March 2011 showed that 26% of downloaded apps were only used one time with that number dropping to 22% in 2012 along with a corresponding increase in those who used an app more than 10 times in the following months, growing to 31% (from 26% in 2011).
Looking further into the numbers also reveals some interesting trends with iPhone and iPad users 52% more loyal in returning to their apps than Android users who also lose out on the one-time usage rate with 24$ compared to 21% for iPhone and iPad.
These improvements however suggest that app publishers may be building better, more engaging apps or the user is simply becoming far more selective about which apps they try as they gain experience in how to best integrate mobile technology into their lives.
Without doubt though, the iPhone is still providing developers with the best app retention rates with 94% on the iPhone compared to 47% for Android which is attributed mostly to the simplicity of migrating apps across devices on the Apple platform compared to Android.
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45 Comments
Cynthia
It only makes sense that as any technology or market matures, the consumers become more sophisticated or savvy about the use of such technology. We have no doubt seen this come to pass within the mobile app market. We saw apps evolve from simple, inane usage to more functional purposes such as those which utilize GEO coded functions for the purpose of marketing a product or service to those in the vicinity of the business.
Thomas
Like most things in life, I think the reason for these telling statistics is a little bit of both factors. In fact, I would guess that one factor drives the other to the point where you get these rather dramatic drops / increases in sales and downloads. For instance, in the early years of apps, people were downloading anything and everything just for the novelty of discovery. But as consumers become selective apps get better.
Stephanie
What exactly are Retention Rates? Is this a stat that is sort of like a bounce rate' in Google Analytics? Is that what affects the percentage point? If so , then I can understand that based on my experience using the web GA dashboard. The bounce rates are no doubt affected by the evolution of the users and the apps themselves. As we learn how to use our mobile devices more efficiently, our needs shift.
Marcus
I am a bit old school when it comes to this stuff, where I know what retention rate is the rest of it is a bit out of my tech league. That is why my grandson is all the time telling me how to use my tablet. I haven't given up on the technology it just has passed me by to quickly.
Reginald
Thomas is right in the early years you had to download things so you had to buy them and now that has drop considerably because of all the stuff out there for free. Now that people are being more selective about what they download the apps are getting better and people are passing the word so you get more traffic.
Joseph
It is not surprising to me that the retention rate is so high the apps. that are available to you on the Iphone alone are amazing and most of them you can find for free. I have noticed however that there are a lot of affiliate marketers and things with adds in these apps. to sell you something else, how do you get in to something like that?
William
I am not surprised that Apple is leading the retention rate in apps because not only is the simplicity of use and sharing from phone to tablet what it keep people coming but I think on average more people have the Iphone over the android anyway. I just recently got my Iphone and I have used multiple apps simply because they were there, so getting and keeping customers is easy.
Robert
I don't think that the retention rate for any Apple product is going to be a problem as far as I know they are the only one that claims the device can't get viruses like computers can right? That is what keeps me coming back and if I ever get a virus on one of my Apple devices then I might look elsewhere but until then I will remain retained by them because of this.
Kenneth
I suppose this means that these retention rate statistics indicate that consumers are becoming savvier about using smart phones and tablets and that also means that app developers are learning about the various habits of consumers and their usage of mobile apps. Apps are going to continue to improve and become more useful and intuitive. Thank you for this informative report.
Brian
Thomas is right at first when I got my Iphone I would download free apps just because they were free and I wanted to see what they were and what they would do but found out quickly that this was pointless because they didn't work that great after all and I would delete them. Now like he said I am much more selective so the apps are getting better.
Mary
Many organizations have little knowledge about the people using their mobile apps, how and why they are using them, how to effectively communicate with them, and how to support them all of which are critical to providing a tailored mobile customer experience. Indeed, failing any one of these things can lead to users abandoning an app at a time when the competition among apps is increasingly fierce. This may be skewing those user retention rate statistics.
Judith
Forgive me for my ignorance, but does user retention mean or indicate that mobile app users continue to repeatedly use the same apps? I guess that would make sense cause if you download an app, it is your active decision and not like TV ads which are a passive audience and much less effective. The only exception is when you download some app and it disappoints you. Some people like me don't even know how to delete apps from a cellphone.
William
Mary is right you have to get to know the people that will be using your app in order to make it so they want to return and continue using it. You have to offer stuff that they want and if you don't take the time to research the people that will be visiting your site then you aren't going to have that information. Making the customer experience one they won't forget works.
George
Not only do you need to make the experience one the customer won't forget but you need to be unique and fun so that your app sticks out in people's minds so that they tell their friends and family. You have to consider word of mouth advertising as well in this line of business, but William and Mary are right you have to know the customer as well.
Dean
It seems to me that the importance of these stats matter for one type of strategy. Mobile Applications come in two business models. The first depends on the sale of applications, and actual retention is only a minor concern so far as it can drive additional downloads. The second model depends on user engagement, and the application is generally free, and it relies on user retention to drive ad or sales revenue.
William
The retention rates have more to do with how useful the application is, but in some cases, it is solely due to how fun the app - as in the case of video games (Candy Crush Saga, Angry Birds, etc.). For game apps, I think the strategy is to generate ad revenue, so the goal is to get lots of downloads. Whatever your strategy is, you better utilize any gimmick you can find.
Dale
The retention rates have more to do with how useful the application is, but in some cases, it is solely due to how fun the app - as in the case of video games (Candy Crush Saga, Angry Birds, etc.). For game apps, I think the strategy is to generate ad revenue, so the goal is to get lots of downloads. Whatever your strategy is, you better utilize any gimmick you can find.
Mary
Traditionally, retention rate tends to be used as a measure for learning capacity, no? But this clearly is not the case with mobile apps because no one is downloading an app in order to learn - well, at least in most cases. Most of the time the app is designed to provide some technical assistance, such as using GPS to target certain products or for fun games like the apps that made their creators rich.
Jorge
What is the difference in the apps on the Android compared to the Iphone? I thought they were the same apps, is the problem the fact that the Iphone makes it easier to get to the apps and things then the Android does or what? This was a very interesting post and if you have an answer I look forward to seeing that as well, keep up the good work.
Lyle
When used correctly, push notifications can help mobile application developers double their four-month user retention rates while significantly driving engagement. I read that in yet another of the myriad of reports that study this sort of thing. In a review of 360 apps' push messaging strategies, the report found that push messaging alone can drive retention and engagement rates. This seems to be yet another trend.
Sandy
George you are right the fact of word of mouth is huge you have to consider that when you think about these things because that travels almost as fast as mobile devices do. You have done a good job with this blog and the comments that you have left on your blog are very helpful as well when you are trying to teach someone that best way to keep customers.
Michael
apps need to go back to boot camp. And not just any boot camp. Apps need to become more friendly and require sensitivity training. Without it, user retention goes down the drain in just a few days without it. Even though these user retention rate studies seem positive - as in retention rates are going up, I think it's a sign that apps were pretty bad since the beginning and that developers are get more savvy.
Georgette
Michael I don't know that sensitivity training is required but I do agree that they need some sensitivity training for sure, there are so many apps out there that don't cater to the needs of the customer that I am surprised that they are still there. You have an interesting look at things here but in a way you are absolutely right as well. Keep up the good work.
Anita
I have learned that the better the mobile app the better the retention rate will be but I am not sure how to make it the best app available? You have done many posts on this subject and I have enjoyed them all so I will make sure to post more comments on them as well. Keep up the good work it looks great and it is very professional.
Richard
Customer loyalty goes back a very long time, the idea that rewarded patrons bring in more, reliable and ever-widening business. The fundamentals haven't changed, the mediums have, though: when customers spent increasing amounts of time online, businesses followed them, offering a new range of products and services that are available via a smartphone or a tablet. And now harnessing customer loyalty via apps is the rage; but while offering customer loyalty apps is one thing, ensuring that they're worth the time and money is another.
Michael
Customer loyalty goes back a very long time, the idea that rewarded patrons bring in more, reliable and ever-widening business. The fundamentals haven't changed, the mediums have, though: when customers spent increasing amounts of time online, businesses followed them, offering a new range of products and services that are available via a smartphone or a tablet. And now harnessing customer loyalty via apps is the rage; but while offering customer loyalty apps is one thing, ensuring that they're worth the time and money is another.
Asia
You know to be real honest I never thought about the retention of the customers when I created my app I was only thinking that I wanted to make money. I guess that was foolish because the only way to make money at this is to retain the customers right? I am so glad that I read this post now I can go back and redo some things and make it better.
Jamie
From looking at the iphones that all my friends own, I noticed that they seem to share an almost identical interface - because it is the same company providing the format. As a result, they can hand each other their iphones and there is no having to get familiar with the other person's phone operating system. With Android, it is open source and interfaces vary according to the phone brand. This I suspect can drive down retention rates.
Ulysses
I am not surprised that the report showed that 26% of the apps downloaded were only being used once, I have done that myself, you get it on your phone or what ever device you are using and try it then decide you don't like it and delete it. If there was a way to try out an app before you downloaded it then I bet the number would continue to decrease.
Mary
It does not surprise me at all that the iphone leads the way in user retention rates for this study. But I have to ask the question: are these statistics misleading because of the popularity of the iphone? Some could say that there are more Android phones being sold than iphones, so the results cannot be based on the quantity of users for this very reason.
Don
There are so many apps out there and so many of my friends download them and then delete them because they find out they have to buy it or something or they just don't like it. Is there a way to test an app before downloading it that is something that should be worked on because that would be very handy to have. Thank you for the post.
Jason
This really is not a surprise to me, I like the apps that I have on my phone and I am always looking for more new ones that are fun and exciting not to mention useful. Thank you for posting this you did a great job and I look forward to browsing the app store more than ever now. You've done a great job on your blog and the more people see it the better.
Christina
I wonder why it is that the Apple iphone has the most retention rates. I think it may be because the OS for the iphone is intuitive and simple. Everyone seems to be familiar with it. On the contrary, Android phones have many different user interfaces that varies with each brand of cellphone. I just got a Motorola and the user interface was totally new to me. And maybe that is a factor with Android phones.
Randy
In the early days of the App Store and Android Market (Google Play) publishers focused on developing an initial presence and, with the limited data available, could only measure success by the total number of downloads. However, many of those downloads were poorly acquired and never turned into long-term customers. I guess now there is more focus on retention rates and getting quality clicks.
Martin
Getting customers to try your application is a challenge, but making sure they come back can be even harder. In today's crowded mobile market, content is king. And, it's that content that will drive (or kill) your user retention. Anyone who has a mobile app knows retention is the first step in mobile success. The longer a person uses an app, the more likely they are to start exhibiting the behaviors developers wantwhether it's monetizing in a game, banking on a phone or just engaging with a brand.
Carl
I have been doing some reading on this subject, trying to learn as much about apps before I sink any time and money into development. I read how push notifications can increase mobile application user retention rates and significantly boost engagement, this according to one study, released in November. The study analyzed 360 of its customers' apps spanning numerous types, classifying them as "High Push Engagement. I still learning the terminology and it sure get complex.
Samuel
I have read this somewhere before and I thought it was a great idea, there needs to be a way to sample an app with out downloading it on your device to just have to turn around and uninstall it later when you find out you don't like it. If that was something that Apple could do on their Iphones then that would be raise the retention rate ten fold.
William
Let's face it, Americans are addicted to their smartphones. A recent report on TV revealed that Americans spend about 2 hours and 38 minutes a day glued to their mobile devices, with 80% of that time spent in/on mobile apps. With something like over 700,000 apps available for download in both Google Play and the Apple App Store, I think it is safe to say that apps have reached critical mass.
Naomi
App user retention has become the single most important metric for iOS & Android app developers. In the beginning of the mobile explosion, I remember it was a gold rush for developers to rush' out and stake their claim' by building any kind of frivolous app just so they can get a piece of this new economy. Now, the demand is not in the numbers (in most cases), but in the retention rates.
Asia
I can understand the retention rates being high especially with the Iphones because you never see the kids these days without their noses in their phones and you know they are playing a game or something that is an app. so this is not surprising at all to me. Keep up the good work I am looking forward to seeing what you come up with next.
Heather
With the new Iphone 5S and C coming out will there be other apps available to them that aren't available now? The more popular the phone the more popular the apps the more retention rate you are going to have. I suppose that this means that there will be a new Droid coming out or Galaxy something or other. Great post thank you.
Martin
When Google Android ownership peaks, the iPhone's 91% retention rate versus Android's 76% rate will drive iOS market share gains. So I guess you can say that retention matters, A lot of people argue this. Yet, oddly, Apple's unparalleled customer loyalty has gone largely unnoticed in most market - share forecasts. It's something that should be closely considered in any sales projections.
Daisy
I would like to better understand what is the iPhone's place in the global market for smartphones. The iPhone's share of the global smartphone market has been climbing steadily from in 2008 to a projected share of 24.4% in 2013. Some forecasts that smartphone shipments will reach 1.5 billion by 2017. I am quite certain that the growth of the smartphone market will slow dramatically over the next five years as it becomes increasingly saturated and crowded.
Nathan
It's clear from this article that customer retention is one of the biggest challenges marketers face with mobile app deployments. Even as average retention rates have increased, they still hover around the 35% mark 90 days after download according to some of the analysis published last year. Retail, entertainment and business apps all fall in at 35 percent and under for average customer retention. I guess this is the most significant barometer for measuring apps.
Carl
As mobile (social) games are becoming even bigger than their desktop counterparts, I thought that this post on mobile retention numbers was really good. In the past few months I've been talking with several different companies with free2play games for iOS mobile games (iPad or the iPhone). From what I have heard it seems that most hit games have >50% 1-day retention, >25% 7-day retention and >15% 30-day retention. That tells you a lot about game apps.