Why app development needs to take loyalty and retention very seriously

April 22, 2016 / by / 0 Comment
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In today’s continually changing business environment, the ability to find a target market and to keep them loyal should not be quite as hard as some entrepreneurs think, according to Simply Business. However, entrepreneurs are advised to keep pace with dynamic marketing strategies and evolving trends.

A study conducted by Bain & Company, together with Harvard Business School’s Earl Sesser, revealed that companies earned more when they served loyal customers rather than new ones. In fact, a five percent increase in customer retention was seen to generate 25 to 95 percent profit increase.

Businesses involved with mobile app development were not any different. Gamasutra reported that the fundamental measurement of any successful mobile app is its ability to keep its users engaged and to keep them coming back to use the app. In particular, an app’s growth is seen in its installs and retention numbers.

Companies, small businesses, and even mobile businesses, in this age of technological innovations and empowered customers—those who have discovered that they hold the key to the what, when and how of purchases—must be proactive in seeking customer loyalty. Consumer loyalty increases word-of-mouth referrals and it becomes easier for these businesses to introduce upgrades or new products.

Installs and Retention

Installs are the number of users that download the app on a given day, and retention measures the number of users that return and use the app after installation. Having users return and use the app gives the company a higher survival rate and a chance to grow, a feat more challenging than having people install an app.

Keeping customers loyal turns out to be cheaper than getting new customers in terms of mobile apps usage. An Econsultancy report shows 70 percent of companies saw better profits by keeping customers loyal and about 49 percent found that building a good relationship with customers generated higher returns on investments.

However, customer loyalty does not come by easily. Venture Beat further explains that with the developing age of mobile, customer expectations are transformed and customer experience is altered. Loyalty, in the form of using the same app three or more times in a day, is getting harder to achieve.

Content Matters

The ever-advancing state of smartphones, tablets, internet connectivity and user-friendly mobile apps drive customers to rely on their devices, which, in turn, increases their mobile engagement, as revealed by a study published in Science Direct.

However, to achieve a retentive mobile engagement, apps must also know and deliver good content. According to the same VB report, leading mobile apps like Facebook and Twitter recognize what customers need and know when to engage through push notifications and emails without appearing too imperious. These companies know how to produce engaging content that users are actually interested in—a good marketing strategy for mobile app’s growth. By delivering what users want, these apps emerged on top of the mobile app industry.

Content Marketing Institute reports that 88 percent of businesses admit to using engaging content as a marketing approach. Engaging digital content includes blogs in platforms like WordPress, Quora, Medium, and Tumblr. Business news apps, like Born2Invest, can also be a great example of great and engaging content. The mobile app carefully curates business news from trusted sources into effective 80-word summaries. According to Einhorn, while there is no science addressing user frustration over content consumption, Google’s scientifically based search results showed effective news delivery in 60-80 words or less.

“Our marketing strategy always starts with a ‘content first’ approach. We never launch any acquisition strategy without having good content,” said founder and CEO Dom Einhorn in an exclusive interview.

The Born2Invest app is specifically built on engagement, which most recently earned it a 72.55 percent readership on its Android platform, from January 24- February 6. On its iOS platform, the mobile app had an 89.14 readership on its Next Story category, with Russians being its top users for both platforms.

On the other hand, Buzzfeed’s viral listicles and engaging content make it a one stop app for people who want to see everything in one place—from trending news to interesting quizzes and features. Its customized menu allows a user to create better options for their app preferences. The mobile app’s analytics provided in its page showed Buzzfeed’s six billion monthly views across all platforms—mobile, desktop. It is a global network for news and entertainment. However, 70 percent of its views comes from mobile device users. The app’s content is also available in six languages including Spanish, Portuguese, and French.

The mobile app trends face headstrong projected growth of over $51 billion this year but will exceed the $100 billion mark by the year 2020, revealed market tracker App Annie. However, like any business, mobile apps need to measure up to success indicators to become leaders and top performers in this billion-dollar industry. Recognizing that customers need an engaging content is a path towards customer loyalty. More so, getting the right people to download your apps is a path towards business growth.



Sharon Harris, 28, likes tech and biz. Any technology topic from analytics, the Internet Of all Things, to digital devices is enough to send her Muse into overdrive. The lady from Canberra was also born with one foot in the business world, thanks to entrepreneurial parents who built a business from literally nothing. One of Sharon’s life goals is to put up her own start-up one day. And what would be a better way to start than do what she’s doing now: covering the finance, investments, business, and digital beats?