Keep Them Coming Back: How to Use App Retargeting to Maximize Customer Loyalty and LTV

In today's marketplace, securing new installs is just the beginning. The real challenge lies in retaining those users and maximizing their lifetime value (LTV). According to AppsFlyer, while paid installs grew modestly in 2024, paid remarketing conversions surged, growing 10x faster than installs. This highlights a crucial shift towards focusing on existing users to enhance loyalty and increase revenue. In fact, in sectors like shopping and finance, remarketing conversions dramatically outpaced new user acquisition rates. This underscores the importance of a strategic retargeting approach to foster user engagement and loyalty.

5 Strategies for Boosting LTV

To effectively enhance customer loyalty through mobile app retargeting, brands must adopt a tailored approach. Below, we outline five powerful strategies that cater to a variety of app verticals. Each strategy is accompanied by a practical example to illustrate how different brands can implement these techniques to not only retain their users but also significantly enhance the community around their brand and increase LTV.

1. Utilize Personalized Reminders

Personalized reminders are a powerful tool in re-engaging users who have shown interest in specific features or products but have not completed an action. By reminding them of what they've left behind, these notifications can significantly reduce abandonment rates and increase conversions. Personalized reminders create a sense of individual attention and care, which is crucial for building long-term relationships with users.

  • Example (Gaming): A mobile gaming company could target users who have stopped playing at the final level of a challenge, offering them special power-ups or a sneak peek of what they might gain upon completing the level. This not only re-engages users but also builds a sense of accomplishment and loyalty towards the game.
  • Example (Health & Fitness): A health app could send personalized notifications to users who have not completed their weekly fitness goals, encouraging them to finish a workout session with a motivational message or offering a free trial for a premium plan that provides advanced workout options.

2. Offer Customized Deals Based on User Behavior

Offering deals based on a user’s previous interactions with the app ensures that promotions are relevant and timely. This increases the likelihood of a purchase. This strategy leverages the data you already have to maximize the impact of your retargeting efforts, enhancing user satisfaction and loyalty by providing value where it's most wanted.

  • Example (E-commerce): An online retail app can retarget users who viewed products but didn't purchase by offering a limited-time discount on those exact products or related items in their wish list. This personalized approach can increase the likelihood of conversion while enhancing the customer’s relationship with the brand.
  • Example (Education): An educational platform can offer special pricing on a course bundle to users who have spent significant time browsing educational materials but have yet to enroll in any courses.

3. Tailor Rewards to User Preferences

Rewarding users based on their preferences and past behavior can foster a stronger emotional connection to the brand. This strategy not only incentivizes purchases but also promotes positive reinforcement, encouraging more frequent interactions with the app.

  • Example (Travel): A travel app can send targeted offers for hotel upgrades or discounted flights to destinations users have searched for but not booked. This not only incentivizes bookings but also strengthens the user's loyalty to the app as a go-to source for personalized travel planning.
  • Example (Music Streaming Service): A music streaming app might offer personalized playlist recommendations with a discount for premium service to users who have frequently used the app but haven't upgraded to a premium account.

4. Incentivize User Feedback

Encouraging users to provide feedback makes them feel valued and heard, which is essential for cultivating a community around the brand. This feedback loop not only improves the app based on user input but also enhances user satisfaction by showing that their opinions can lead to tangible changes.

  • Example (QSR): A fast-food app might push notifications offering a free item on their next visit in exchange for completing a feedback form about their recent order. This engages users directly, enhancing their sense of community and involvement with the brand. This will increase loyalty and the likelihood of repeat visits.
  • Additional Example (Finance): A personal finance app could offer bonus features or content for providing feedback on new financial tools or services they recently tried within the app.

5. Provide Exclusive Access or Benefits

Exclusive access to services or benefits can create a sense of belonging and prestige among users. This approach is particularly effective in sectors where loyalty and long-term engagement are critical for revenue growth.

  • Example (Sports Betting/Mobile Casino): A sports betting app can use retargeting to inform past users about exclusive events or odds, enhancing their sense of exclusivity and loyalty to the app, which can significantly boost LTV.

Retargeting Strategy Checklist for Marketers:

  1. Segment Your Audience: Understand and segment your audience based on their behavior and preferences to tailor your retargeting messages.
  2. Personalize Your Messages: Use data-driven insights to create personalized messages that resonate with the user's interests.
  3. Time Your Engagement: Choose optimal times for sending retargeting messages based on user activity and engagement patterns.
  4. Monitor and Optimize: Continuously monitor the performance of your retargeting campaigns and optimize based on the results to ensure maximum efficiency.
  5. Respect User Preferences: Always provide users with the option to control their communication preferences and respect their choices to maintain trust and compliance.

Takeaways:

  1. Tailoring communications and offers to the specific interests and behaviors of your users can dramatically increase engagement and loyalty.
  2. Effective mobile app retargeting must be dynamic and responsive, adapting to user behaviors and preferences in real-time.
  3. Investing in retargeting not only maximizes ROI but also transforms occasional users into loyal customers.

Ready to elevate your app’s performance and user retention? Contact us to harness the power of mobile and CTV retargeting strategies to build lasting loyalty and maximize LTV.