bizreport.com
December 2014 saw the percentage of engaged app users reach an all-time high but user retention declined, according to new figures released by app marketing and analytics platform Localytics.
by Helen Leggatt
Engaged app users are those who use the same app ten times or more in a month. The percentage of such users rose from 25% in Q3 2014 to 30% in December 2014, according to the latest Localytics App Stickiness Index.
Localytics' index is based on two key app metrics - Power Users and Loyal Users. Power Users are those who use an app 10 times or more in a month and illustrates how many engaged users an app has. Loyal Users are those users who return to an app within 3 months of their initial app session and represents loyalty and churn.
Media and entertainment apps performed best for overall app stickiness, or being opened 10 times or more per month, rising to 26% in Q4 up 4% on the previous quarter. Technology and business productivity apps saw the most-improved stickiness in Q4 having begun with 15% at the start of 2014 and rising to 23% in Q4.
However, while mobile users are more engaged with their favorite apps, they are also less likely than ever before to revisit less-liked apps. The percentage of returning app users (retention) fell in December with only 12% of users revisiting apps within three months. Localytics puts much of this Q4 trend down to mobile users abandoning apps when switching over to a new device.
"The high volume of new device launches and increased marketing campaigns in Q4 presents both opportunity and risk for app engagement," said Raj Aggarwal, CEO of Localytics. "The winners were apps that invested in understanding their users' behaviors and then delivered personalized interactions and content. This type of smart marketing forges positive app 'habits,' ensuring the loyalty of users even as they upgrade to a new iOS or start using a new device."
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