First a pandemic and now the rumors of a downward turn in the economy might be a reality soon. So far the 2020s have been nothing short of a rollercoaster. 

Supply chain disruptions combined with the ongoing war in Ukraine have led to elevated inflation and higher interest rates which are raising concerns that the U.S. economy could be headed towards a decline. However, not all signs are pointing in a negative direction. The unemployment rate is at 3.6%, which is the lowest it's been in decades. The U.S. has added 400,000 jobs a month for the past few months resulting in about two vacant jobs posted for each person unemployed and looking for work. 

Regardless of specific figures, there has been a palpable shift in the United States when it comes to the way people are spending their money. However, mobile gaming has withstood the last two recessions and come out on top both times. What does this mean, then, for mobile marketers? 

Current State of the Economy

It has been clear that the 2020 pandemic changed the world as we know it. Businesses are still recovering from month-long closures, the “work-from-anywhere” mentality has been adopted among many companies and there is a general caution when it comes to illnesses that didn’t exist before. The economy in the United States shrank by 3.5% in 2020, pushing economic growth to a low not seen since the U.S. wound down wartime spending in 1946. This type of economic hit doesn’t just reverse itself overnight – which brings us to where we are today. 

TD Securities, a leading investment bank, recently said there is more than a 50% chance of a U.S. recession within the next 18 months. Fortunately, with the labor market remaining strong, other experts are divided on whether or not a recession is inevitable in this unique economic environment. Although the risk of a future decline is daunting, this is by no means a time for mobile marketers to panic. 

Economy and Mobile Apps

Economic changes, as daunting as they may seem, don’t necessarily mean a decline in business ventures, especially for those in the mobile space. In fact, at many points in history, tightening budgets and economic headwinds have spurred technological innovation and progress. Just take the 2008 economic crisis which led to the early adoption of mobile gaming. 

In 2008, we saw the rise of the Great Recession from December 2007 to June 2009, the longest contraction since the Great Depression. Oddly enough, the Apple App Store launched in July of 2008 – right in the middle of this time. Within three days, there were 10 million downloads with more than 800 native applications available on the mobile app store. 

Back in 2008, the goal of game developers was to capture the newly emerging “social gamer”. These casual gamers played games with their Facebook friends when convenient and without thought of spending their own money within the game. They were playing for convenience and enjoyment during a time of turmoil and uncertainty

In 2020, during the global pandemic, people once again turned to their phones for distraction and entertainment. During Q1 of 2020, mobile app users spent $23.4 billion in app stores and there were 31 billion new apps downloaded during this same time period. With lockdowns and other restrictions, new apps came to the forefront of the app stores and proved once again that apps continue to be resilient in times of recessions. 

2020 Growth

Source: BugSnag

 

As the looming thought of a declining economy is daunting, mobile marketers can make the best of a dark situation by making sure to stay innovative and flexible in order to retain loyal users

Retargeting Holds Strong

Although mobile apps have proved that they remain strong amongst economic downturns, mobile marketers need to remain strategic and focused as companies will be more budget-conscious than they were in previous years. Acquiring a new customer can cost five times more than retaining an existing customer, which means that retaining users should be a marketer’s main focus during this period of time. Taking into consideration your customers’ needs, staying creative and innovative while offering discount incentives are all ways to keep your valuable users during this uncertain time.

Customer Focus

Regardless of personal challenges, professional difficulties or worries of an uncertain future, focusing on the customer and shining a positive light on their lives will hold value in the long term.

Creating positive notifications related to the customer interests will be the key to winning these lapsed users. Pushing messaging that reminds the customer of something exciting waiting for them in the game or an encouraging video can help distract  from any stresses or negative things that may be going on in their lives. Make sure your users know that your focus is on them and their happiness! 

Creativity

Just like with any recession, people tend to cut back on luxery spending and take more time for themselves in their homes. They may be spending significantly more time on their phones during this time. This is a perfect opportunity to utilize creativity in messaging and graphics to engage dormant users to play or interact with your app. 

Chances are, since users will be on their phones more than ever to pass the time, they will be exposed to a higher number of advertisements. This is a chance to hone in on new creative advertising techniques that are eye catching and exciting. Breaking through the clutter is more important than ever. Try utilizing new social platforms or short videos to catch the attention of your audience!

Offer a Deal! 

Everyone has money on their mind right now and users will be less likely to spend as frivolously as before. This is the perfect time to offer incentives or discounts to your users who have not interacted with your app in quite some time. Even in the hardest of times, it’s enticing to see an app offering a one-of-a-kind special. Retargeting users with a few months of a free subscription can help you encourage trust and build a relationship between you and your users. 

The key to offering these types of discounts or incentives is to make sure you have a time cap on that specific offering. If you have the deal last too long, users don’t feel the need to act quickly and you will waste valuable time and energy. 

Takeaways of Retaining Users in a Downward Trending Economy

Supply chain disruptions combined with the ongoing war in Ukraine have led to elevated inflation and higher interest rates which are raising concerns that the U.S. economy is on the decline.. Regardless of specific figures, there has been a palpable shift in the United States when it comes to the way people are spending their money. However, mobile gaming has withstood the last two recessions and have come out on top both times. 

Economy and Mobile Apps

  • Great Recession 2008: The Apple App Store launched right in the middle of the Great Recession in 2008. Within three days there were 10 million downloads with more than 800 native applications available on the mobile app store. This time sparked a new era of mobile apps, especially in the gaming sector. 
  • Pandemic 2020: During Q1 of 2020, mobile app users spent $23.4 billion in app stores and there were 31 billion new apps downloaded during this same time period. With lockdowns and other restrictions, new apps came to the forefront of the app stores and proved once again that apps continue to be resilient in times of recessions. 

Retargeting Holds Strong

Retention is key during times of uncertainty and budget cuts. Acquiring a new customer can cost five times more than retaining an existing customer. Here are 3 ways to retain and re-engage users during this recession. 

  • Customer Focus: There is no way to know what a user is going through in their personal lives and in uncertain times like these, there is no room for apathy. Make sure your users know that your focus is on them and their happiness! 
  • Creativity: Just like with any sort of recession, people tend to cut back on unnecessary spending and take more time for themselves in their homes. This is a perfect opportunity to engage dormant users to play or interact with your app, however the key is creativity. Try utilizing new social platforms or short videos to catch the attention of your audience!
  • Deals: Everyone has money on their mind right now and users will be less likely to spend as frivolously as before. Offering a few months of a free subscription can help you encourage trust and build a relationship between you and your users.