Monday 21 July 2014

Mobile Developers Must Engage And Retain Users Quickly, Says Swrve's Latest App Report (forbes.com)

Mobile marketing firm Swrve has published data on how usersinteract with the applications on their smartphones. The average retention rate shows 26% of users returning to an app for a second time within a forty-eight hours of first opening the app, although over a third of activity with a mobile app lasts less than one minute.
Gathered during May 2014 through data collected by Swrve’s marketing platform, and the data in this survey covers “over fifty applications, with tens of millions of users and billions of mobile events.”
Looking first of all at the retention data, Swrve starts the clock as an app is opened for the first time. Previous data suggests that straight away, twenty-four percent of those who installed the app are not coming back at all. Of the rest, roughly another quarter will be back the next day (within 24-48 hours of the first session), and after seven days the retention rate drops to 13%.
Over the month, the average user starts 13.69 sessions. This isn’t broken down by app type (games will take up significantly more sessions over a month) but if users are engaging with the average app every other day there are monetization and personalization opportunities here that can be counted on.
Google Play Store (image: Google.com)
Google Play Store (image: Google.com)
As for the most effective method of engaging during those sessions, Swrve’s data suggests that in-app messages will generate a click-through rate of 37%. Even with the option to dismiss such a message, it is a very high rate, and of course again this is spread over 50 apps, so with targeting and better understanding of each user this rate could easily be increased. Push messaging gathers around 0.6%, which is higher than your standard mobile a banner ad, but still much lower than many would hope for.
The modern app landscape has placed a huge emphasis on freemium revenue streams, and it is important for developers to maximise the opportunities they have.
Christopher S. Dean, CEO of Swrve summarises the data for developers, “this data confirms that building relationships on mobile is hard. Retention is a challenge, as is the need to make an impression within a short space of time.”
Every app is different, and will require careful examination of the available data, but overarching studies, such as Swrve’s study here, points to a model that demands the application is engaging and impactful in the first sixty seconds capture the user. It has to do enough to bring the user back to the app within a short timescale, and there are engagement opportunities that provide high click-through rates that, if monetized correctly, will create a significant and sustainable revenue stream.

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