Having a streamlined mobile marketing funnel is incredibly important to the success of an app. A mobile marketing funnel sets up users to engage and stay loyal to an app. However, there are many stages in which a user can churn, or abandon an app, as they continue down the funnel. The goal of every app marketer is to maximize user retention while minimizing user churn. 

The average app loses 77% of its daily active users (DAUs) within the first 3 days after installation. In this blog, we go over the reasons why users may be churning and how marketers can reduce their app user churn rate to maximize app success. 

What is User Churn?

When a user churns, it means they have stopped using the app and are inactive. This can happen if a user has uninstalled the app, stopped logging in, or significantly reduced their engagement with the app's features and content. App user churn is a critical metric that indicates the rate at which users leave an app and don’t return.

Churn is a significant concern for app developers and marketers because it directly affects the growth and success of an app. High churn rates can lead to a shrinking user base, decreased revenue (especially for apps with in-app purchases or subscriptions), and lower overall user engagement.

How to Mitigate App User Churn

Limiting user churn is paramount to an app’s success. The success rate of selling to a new customer ranges from 5-20%. On the other hand, the probability of selling to existing customers ranges from 60-70%. This means that retaining users throughout a  mobile marketing journey is extremely important for the growth of an app. Strategies that app marketers can employ to limit app user churn include delivering a high level of personalization, utilizing push notifications, and adding value at each stage of the marketing funnel. 

Personalization

Using data and analytics to personalize the user experience helps guide a new user down the marketing funnel. By tailoring content, recommendations, and notifications based on user preferences and behaviors, users feel more comfortable engaging with an app. Personalization can help users feel more connected to an app and its offerings. 

In order to achieve this level of personalization, app marketers can segment their user base based on their behavior, preferences, and usage patterns. From here, they can create unique and targeted marketing campaigns for each segment. This approach allows marketers to provide more relevant content and offers based on different user groups. For example, a retargeted ad re-engaging a player who has just downloaded an app will be vastly different from the messaging of an ad served to a player that has been consistently playing and just dropped off. A new player might require more description and education about the game, whereas a seasoned player may resonate with personalized rewards based on the level they left off from.

Push Notifications

Push notifications can play a significant role in reducing user churn by engaging users throughout the marketing funnel. These are clickable messages that are sent directly to a user’s device (even on the lock screen) to make them aware of time-sensitive information such as an expiring coupon, referral code, limited time discount or in-app reward. This type of notification reminds users of the value an app offers and encourages them to return. Leveraging push notifications can drive a 191% increase in engagement. However, it's important to use push notifications strategically to avoid annoying users and causing them to opt out or uninstall the app. 

An effective use of push notifications leverages personalization and relevant information. For example, app marketers can use push notifications to remind users of incomplete actions or tasks within the app. Marketers can remind them to finish a challenge they started, complete a subscription purchase, or other relevant in-app actions. Enticing users with strategic offers will inspire them  to re-open your app. 

Remember that while push notifications can be effective at reducing user churn, overusing them or sending irrelevant content can have the opposite effect and lead to more users opting out or uninstalling the app. Strive for a balance between keeping users engaged and respecting their preferences for notifications.

Adding Value Throughout the Funnel

A core part of limiting user churn identifying where users are dropping off within the funnel. From here, app marketers can pinpoint leaks and test different strategies to increase retention. Some common points of churn within the funnel are poor onboarding, limited engaging content, and lacking app navigability. 

A smooth onboarding experience is essential for the retention of new users. It’s important to provide clear instructions and guidance on how to use your app's key features. Making the onboarding process quick and intuitive will reduce the chances of users becoming frustrated and abandoning the app. Over 80% of consumers say they’d be more likely to stay loyal to a business that invests in welcoming and educational onboarding experience.

In addition to a seamless onboarding process, providing engaging and relevant content can help mitigate user churn. By regularly offering new and engaging content within an app, users are motivated to return. This could include fresh updates, relevant messaging, videos, or interactive features. 

Navigability is a crucial part of user retention. Around 19% of users agree they are more likely to abandon an app if it is difficult to navigate. This includes everything from the download process all the way to the way a user flows through the app. An intuitive user experience ensures that users can quickly find and access the features, content, and functions they're seeking. When users can effortlessly navigate through an app, they're also more likely to spend longer sessions in an app. 

Takeaways of Mitigating User Churn in the Mobile Marketing Funnel

There are many stages in which a user can churn, or abandon an app, as they continue down the funnel. The average app loses 77% of its daily active users (DAUs) within the first 3 days after installation. It’s important that apps maximize user retention while minimizing user churn. 

How to Mitigate App User Churn:

  • Personalization: By tailoring content, recommendations, and notifications based on user preferences and behaviors, users feel more comfortable engaging with an app. Personalization can help users feel more connected to an app and its offerings. 
  • Push Notifications: Push notifications remind users of the value an app offers and encourages them to return. Leveraging push notifications can drive a 191% increase in engagement. 
  • Adding Value Throughout the Funnel: A core part of limiting user churn identifying where users are dropping off within the funnel. Some common points of churn within the funnel are poor onboarding, limited engaging content, and lacking app navigability.