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User Retention Critical for Retail Apps

Posted Apr 5, 2016

The need to retain users on mobile apps is undisputed among leading mobile publishers. For publishers of retail apps, it is even more critical.

According to a recent report from Business Insider and data from Monetate, returning eCommerce customers are nearly twice as likely to convert than new customers. Furthermore, when they do convert, they spend nearly twice as much.

retail apps conversion by user type

Of course, before conversion can happen, users must ad a product to their cart. While return customers—regardless of platform—are nearly twice as likely to add an item to their cart than new customers, this delta expands further when looking only at mobile customers.

On mobile, only 4% of new customers will add an item to their shopping cart, but 10% of repeat customers will. In short, return shopping app users are 2.5 times more likely to initiate a purchase than new users.

With this in mind, the question is no longer simply one of user acquisition but one of user re-engagement. How can mobile retail app publishers drive users to open their apps a second or third time? The key is in reaching these consumers at key moments in their day with relevant content. Opportunities include:

  • leveraging push notifications to interest users in limited time offers or promotions that are customized to their in-app history
  • running cross-promotion campaigns across additional apps by the same publisher that drive the user back to the desired app
  • running mobile campaigns in other apps that targets existing app users with promotions to drive them back to the desired app

Whatever the tactic, the objective remains the same: drive a user back for additional sessions to increase the likelihood they make a purchase.

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